Luxembourg VAT Calculator 2025 | 17%, 14%, 8%, 3%

  • Adam
  • November 3, 2025

Free Luxembourg VAT calculator (TVA). Calculate 17% standard (lowest EU), 14%, 8%, 3% reduced instantly. Add/remove tax with official government formulas. Updated 2025.

🇱🇺 Luxembourg VAT Calculator

Calculate Taxe sur la Valeur Ajoutée (TVA) - Updated 2025

Standard: 17% | Reduced: 14%, 8%, 3%
VAT Rate: 17%
Base Amount (Ex VAT): €0.00
VAT Amount (TVA): €0.00
Total Amount (Inc VAT): €0.00

How to Calculate Luxembourg VAT (TVA)

Luxembourg's Value Added Tax (TVA - Taxe sur la Valeur Ajoutée) is a consumption tax applied to goods and services. Luxembourg has the lowest standard VAT rate in the EU at 17%, along with multiple reduced rates of 14%, 8%, and 3%. VAT was introduced in Luxembourg in 1970 and is administered by the Administration de l'Enregistrement, des Domaines et de la TVA. Luxembourg is harmonized with EU VAT rules as an EU founding member.

2025 Update: Luxembourg maintains its standard 17% VAT rate (lowest in EU) with reduced rates at 14% (limited financial services, wine, cleaning), 8% (energy, plants, repairs, hairdressing), and 3% (food, medicines, books, hotels, restaurants, transport). The 17% rate has been in place since January 1, 2024.

Adding VAT to a Price

When you need to add VAT (TVA) to a VAT-exclusive price, use these formulas:

VAT Amount = Base Price × (VAT Rate ÷ 100)
Total Price (Inc VAT) = Base Price × (1 + VAT Rate ÷ 100)

Example for 17% standard rate: If the base price is €100 (excluding VAT):

VAT Amount = €100 × 0.17 = €17.00

Total Price = €100 + €17.00 = €117.00

Example for 3% super-reduced rate: If the base price is €100 (excluding VAT):

VAT Amount = €100 × 0.03 = €3.00

Total Price = €100 + €3.00 = €103.00

Removing VAT from a Price

When you need to calculate the VAT-exclusive price from a VAT-inclusive price, use these formulas:

Base Price (Ex VAT) = Total Price ÷ (1 + VAT Rate ÷ 100)
VAT Amount = Total Price - Base Price

Example for 17% standard rate: If the total price is €117 (including VAT):

Base Price = €117 ÷ 1.17 = €100.00

VAT Amount = €117 - €100 = €17.00

Helpful Tip: VAT at 17% means that approximately 14.53% of the VAT-inclusive price is the actual VAT component (because 17÷117 ≈ 0.1453).

Understanding Luxembourg's VAT System

What is TVA (VAT) in Luxembourg?

Taxe sur la Valeur Ajoutée (TVA) is Luxembourg's value-added tax system. It's a consumption tax collected at each stage of the supply chain with the final burden on consumers. Luxembourg maintains the lowest standard VAT rate in the EU at 17%. The Luxembourg VAT system is harmonized with EU VAT rules as a founding member of the European Union. Businesses can claim input tax credits for VAT paid on business purchases.

The Five Luxembourg VAT Rates

Standard Rate (17%): Applies to most goods and services including electronics, clothing, motor vehicles, alcohol (except wine), tobacco, professional services, and most entertainment. This is the lowest standard rate in the entire EU.

Reduced Rate (14%): Applies to specific items and services including:

  • Limited financial services
  • Wine fermentation and certain wine supplies
  • Certain cleaning products
  • Management and custody of credit guarantees

Reduced Rate (8%): Applies to essential goods and services including:

  • Electricity and gas (domestic fuels)
  • Flowers and horticultural products
  • Motor fuel (petrol, diesel)
  • Works of art and antiques
  • Repair services for shoes and leather goods
  • Repair services for clothing and household linen
  • Hairdressing and beauty services
  • Bicycle repair services

Super-Reduced Rate (3%): Applies to essential items and services including:

  • Basic foodstuffs (bread, milk, vegetables, meat, fish)
  • Pharmaceutical products and medicines
  • Medical equipment for disabled persons
  • Books, newspapers, and magazines
  • Children's clothing and footwear
  • Hotel accommodation and lodging
  • Restaurant and catering services
  • Passenger transport services
  • Admission to cultural events (theatre, museums, concerts)
  • Admission to amusement parks
  • Water supplies for domestic use
  • Labour-intensive services (hairdressing, domestic cleaning)

Zero Rate (0%): Applies to specific supplies:

  • Export of goods from Luxembourg
  • Intra-community supplies to other EU member states
  • International passenger transport by air and sea
  • Services related to vessels and aircraft
  • Sale of gold to central banks

VAT Registration Requirements

Businesses in Luxembourg must register for VAT if:

  • Annual turnover exceeds €50,000 - Registration threshold for most businesses
  • €10,000 for digital services and goods - Lower threshold for EU digital commerce
  • Non-residents - No threshold for non-residents
  • Importers - Any importer must register

Businesses below the threshold can voluntarily register for VAT.

VAT Filing and Compliance

VAT-registered businesses in Luxembourg must file VAT returns based on their turnover:

  • Monthly Returns: For annual turnover exceeding €620,000
  • Quarterly Returns: For annual turnover between €112,000 and €620,000
  • Annual Returns: For annual turnover below €112,000
  • Payment Deadline: Returns and payments due by 15th of following month/quarter
  • Electronic Filing: All returns submitted via eTVA portal (electronic only)

VAT-Exempt and Special Supplies

Important Distinction: Zero-rated supplies (0%) allow input tax credit claims, while exempt supplies do not, creating a real cost for exempt suppliers.

Exempt Supplies (No VAT, No Input Credit)

Some supplies are exempt from VAT, meaning businesses cannot claim input tax credits:

  • Healthcare Services: Medical and dental services, hospital care
  • Education: Educational services by approved institutions
  • Financial Services: Banking, insurance, investment services (mostly)
  • Postal Services: Universal postal services
  • Sports: Sports services and organized sports activities
  • Cultural Services: Certain cultural services and performances
  • Betting and Gambling: Lottery and gaming services
  • Property: Sale and lease of certain immovable property
  • Independent Services: Independent professional director and officer fees
  • Social Welfare: Social welfare and welfare services
  • Copyright: Certain copyright and author services

Items Subject to 17% Standard Rate

The following are subject to standard 17% VAT:

  • Electronics and appliances (except specified)
  • Clothing and footwear (except children's)
  • Motor vehicles and parts
  • Alcohol (except wine)
  • Tobacco products
  • Professional services
  • Most entertainment services
  • Children's car seats
  • Certain pharmaceutical products

Items Subject to Reduced Rates (3%, 8%, 14%)

The following are subject to reduced VAT rates:

  • 3% Rate: Food, medicine, books, newspapers, children's clothing, hotels, restaurants, transport, cultural events
  • 8% Rate: Energy, flowers, motor fuel, artwork, repairs, hairdressing, bicycle repairs
  • 14% Rate: Limited financial services, wine fermentation, certain cleaning products

Luxembourg VAT Quick Reference

Aspect Details
Standard VAT Rate 17% (Lowest in EU since Jan 1, 2024)
Reduced VAT Rates 14%, 8%, and 3%
Zero VAT Rate 0% for exports and certain supplies
Local Name Taxe sur la Valeur Ajoutée (TVA)
Registration Threshold €50,000 annual turnover
Administering Authority Administration de l'Enregistrement, des Domaines et de la TVA
Filing Frequency Monthly, Quarterly, or Annually (based on turnover)
Tax Type Value Added Tax (VAT)
EU Member Status Founding member - VAT harmonized with EU
Currency Euro (€) since January 1, 1999

Frequently Asked Questions (FAQ)

What is TVA (VAT) in Luxembourg?
TVA (Taxe sur la Valeur Ajoutée) is Luxembourg's value-added tax applied to goods and services. The standard rate is 17% (lowest in the EU), with reduced rates of 14%, 8%, and 3% for specific items, and 0% for exports. VAT is ultimately borne by the final consumer and collected at each stage of the supply chain.
What is the standard VAT rate in Luxembourg?
The standard VAT rate in Luxembourg is 17%, which is the lowest standard VAT rate in the entire European Union. This rate applies to most goods and services, including electronics, clothing, motor vehicles (except certain exemptions), alcohol (except wine), and professional services. Reduced rates of 14%, 8%, and 3% apply to specific categories.
How do I calculate Luxembourg VAT?
To add VAT: multiply the base price by 1.17 (for 17%), 1.14 (for 14%), 1.08 (for 8%), or 1.03 (for 3%). To remove VAT: divide the total price by the corresponding multiplier. For example, €100 with 17% VAT becomes €117; to reverse: €117 ÷ 1.17 = €100.
Who needs to register for VAT in Luxembourg?
Businesses must register for VAT if their annual turnover exceeds €50,000. Non-residents must register regardless of turnover, and importers must register. Businesses below the threshold can voluntarily register for VAT to claim input tax credits on purchases.
What items are subject to the 3% super-reduced rate?
The 3% super-reduced rate applies to basic foodstuffs, medicines, books, newspapers, children's clothing, hotel accommodation, restaurant services, passenger transport, cultural event admission, water supplies, and labour-intensive services like hairdressing and domestic cleaning.
What items are subject to the 8% reduced rate?
The 8% rate applies to electricity and gas, flowers and horticultural products, motor fuel, works of art, and repair services for shoes, clothing, household linen, and bicycles, as well as hairdressing services.
Why does Luxembourg have the lowest VAT rate in the EU?
Luxembourg's 17% standard rate (since January 1, 2024) is the lowest in the EU by choice of the Luxembourg government. The EU requires a minimum standard rate of 15%, but member states can set higher rates. Luxembourg opted for the minimum to maintain competitive pricing.
Can Luxembourg businesses claim VAT input credits?
Yes, registered VAT businesses in Luxembourg can claim input tax credits for VAT paid on goods and services purchased for business use. This prevents tax accumulation through the supply chain. Input credits cannot be claimed on exempt supplies or personal expenses.
How often must businesses file VAT returns in Luxembourg?
Luxembourg businesses file VAT returns based on turnover: monthly (over €620,000), quarterly (€112,000-€620,000), or annually (below €112,000). All returns must be filed electronically via the eTVA portal by the 15th of the following period.
When did Luxembourg's standard VAT rate change to 17%?
Luxembourg's standard VAT rate increased to 17% on January 1, 2024. Prior to this date, the rate was 16%. The increase was part of Luxembourg's fiscal policy adjustments, and 17% remains the lowest standard rate in the entire European Union.

Official Luxembourg Government Sources & References

All VAT data is sourced from official Luxembourg government agencies and trusted financial authorities:

🏛️ Luxembourg Government - Official VAT Information (Guichet.lu) 📊 Administration de l'Enregistrement - VAT Information 💼 Ministry of Finance - Luxembourg Government 📝 Guichet.lu - Official VAT Portal 🔄 Administration de l'Enregistrement - Complete VAT Guide ✅ Luxembourg Government - eTVA Portal

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