In Luxembourg, Value-Added Tax (VAT) is levied. VAT is a general consumption tax that is charged directly on the sale of goods and services in Luxembourg.

The different VAT rates in Luxembourg are:

Rate Type Goods and services
17% Standard All goods and services, except those excluded
14% Intermediary Certain wines; washing and cleaning products; advertising pamphlets; management and safekeeping of securities; heating, ventilation and air conditioning; flammable solid minerals, mineral oil and firewood used as fuel;…
8% Reduced Supply of gas and electricity; cleaning in private households; hairstyling; repair of bicycles, shoes and other leather items; cut flowers and plants for decorative use;…
3% Reduced Certain foods and drinks; pharmaceutical products and medical equipment for disabled persons; certain books, newspapers and periodicals; radio and television broadcasting services; agricultural supplies; children’s clothing and footwear; domestic passenger transport; admission to cultural events and amusement parks; hotel accommodation; restaurants;…
0% Zero Intra-community supplies of goods; exports


Some goods and services are exempt from VAT, such as financial, insurance and educational services.

For the year of 2023 (January 1st to December 31st), the following reductions apply:

  • Standard (17%): 16%
  • Intermediary (14%): 13%
  • Reduced rate (8%): 7%

Last changed