EU member state
Luxembourg VAT
Luxembourg has the EU’s lowest standard VAT rate at 17%. The reduced rate is 8%, the super-reduced rate is 3%, and a 14% parking rate remains for a few supplies. During 2023 the standard rate was temporarily 16%. Funds, holding companies, and cross-border groups often invoice with no Luxembourg VAT at all because the service is reverse-charged or exempt.
Standard
17%
Most goods and services.
Super-reduced
3%
Food, books, pharmaceuticals, and passenger transport.
Reduced
8%
Selected supplies including some advertising and wine.
Parking
14%
Parking rate for certain supplies.
Net to gross
Luxembourg pageNet
€100.00
VAT
€17.00
Gross
€117.00
Most goods and services. Rounded to cents. Not tax advice.
When the rate changed
- 1 Jan 2024 – now17% Standard. Most goods and services.
- 1 Jan 2023 – 1 Jan 202416% Standard. Temporary reduction during 2023.
- 1 Jan 2015 – now3% Super-reduced. Food, books, pharmaceuticals, and passenger transport.
- 1 Jan 2015 – now8% Reduced. Selected supplies including some advertising and wine.
- 1 Jan 2015 – now14% Parking. Parking rate for certain supplies.
- 1 Jan 2015 – 1 Jan 202317% Standard. Standard rate before the 2023 temporary cut.