VAT in Luxembourg
VAT in Luxembourg: the rates, the exemption threshold and the return.
Four rates, an exemption threshold, a filing frequency that depends on turnover: the essentials of Luxembourg VAT, and what Knipsy checks for you on every invoice.
- The standard rate, the lowest in the European Union.
- 17 %
- The VAT exemption threshold since 1 January 2025.
- 50 000 €
- The deadline for monthly and quarterly returns, in the month following the period.
- Le 15
- The platform where VAT returns are filed.
- eCDF
The four Luxembourg VAT rates.
| Rate | Surname | Examples |
|---|---|---|
| 17 % | Standard rate | Most goods and services |
| 14 % | Intermediate rate | Wines, certain fuels, printed advertising material |
| 8 % | Reduced rate | Gas, electricity, hairdressing, repair of bicycles and shoes |
| 3 % | Super-reduced rate | Food, books, medicines, passenger transport, restaurant meals excluding alcoholic drinks |
A single invoice can mix several rates: a restaurant bill, for example, separates the meal from the alcoholic drinks. Knipsy picks up each rate and recalculates the VAT to the cent.
The exemption: below €50,000, no VAT to charge.
A business whose annual turnover excluding tax does not exceed €50,000 can benefit from the exemption: it does not charge VAT to its customers and, in return, does not recover the VAT on its purchases.
Knipsy tracks your turnover and warns you as you approach the threshold, before it is too late to get organised.
How often to file?
| Annual turnover | Returns |
|---|---|
| Up to €112,000 | One annual return |
| De 112 000 € à 620 000 € | Quarterly returns, then an annual return |
| Above €620,000 | Monthly returns, then an annual return |
Monthly and quarterly returns are filed on eCDF no later than the 15th of the month following the period. Knipsy shows your deadlines and reminds you of them.
What Knipsy checks on every invoice.
- The supplier’s VAT number, checked against the European VIES register.
- The consistency between the net amount, the rate and the VAT, to the cent.
- Expenses on which VAT cannot be recovered, flagged before validation.
- The VAT to set aside, visible at any time.
Frequently asked questions
What we are often asked.
Another question? Write to us, we reply within 48 hours.
Does Knipsy file my VAT return?
No. Knipsy prepares the return and its file, then reminds you of the deadline. Filing is done on eCDF, with your own access or by your fiduciary.
Have the rates changed recently?
The rates of 17, 14 and 8% had been lowered by one point during 2023. They returned to their usual level on 1 January 2024; the 3% rate did not change.
Does Knipsy also handle Belgian and French VAT?
Yes. The rates, the accounts and the calendar of returns follow the country of the company’s registered office: Luxembourg, Belgium or France.
Further reading
The other Knipsy guides.
Accounting in Luxembourg
Chart of accounts, VAT, bank, payroll and returns: a Luxembourg company’s accounts, from a photo.
Standard chart of accounts
The seven classes of the PCN 2020 and all their accounts, with their official label.
Invoice scanner
Photo, PDF or email: what Knipsy reads on a document, and the checks made before the accounts.
Ready to put away the shoebox?
Choose your space. Knipsy takes care of the rest, you keep the last word.
A question before you start? Talk to the team