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Answers

Which VAT rates apply in Luxembourg?

Four rates, 17, 14, 8 and 3 percent, and the rate follows the article, not the place of consumption.

By Thinking Desk 3 min read

Key takeaways

  • Luxembourg has four VAT rates: 17 percent standard, 14 percent intermediate, 8 percent reduced and 3 percent super-reduced, set by article 39(3) of the VAT law.
  • A rate below 17 percent applies only if the goods or service is named in annex A at 8 percent, annex B at 3 percent or annex C at 14 percent.
  • Prepared food and restaurant services are 3 percent, but the alcohol part of the same bill is carved out: still wine up to 13 degrees is 14 percent, beer and spirits are 17 percent.
  • There is no eat-in versus takeaway rate split in Luxembourg, the split is per line item.
  • Rates returned to 17, 14 and 8 percent on 1 January 2024 after the temporary 2023 cut to 16, 13 and 7 percent.
On this page
  1. Short answer
  2. Which rate applies to which goods and services in Luxembourg?
  3. Why is the food 3 percent while the beer in the same order is 17 percent?
  4. Does takeaway have a different VAT rate than eating in?
  5. When did Luxembourg VAT rates last change?
  6. Who has to charge Luxembourg VAT at all?

Short answer

Luxembourg applies four VAT rates: a standard rate of 17 percent, an intermediate rate of 14 percent, a reduced rate of 8 percent and a super-reduced rate of 3 percent. The percentages sit in article 39, paragraph 3 of the amended VAT law of 12 February 1979 and have been at this level since 1 January 2024.

Rate Name Examples Legal hook
17 % Standard Everything not named in an annex, including beer and spirits Art. 39(3), Art. 40(2)
14 % Intermediate Still wine up to 13 degrees, mineral fuels, cleaning preparations, advertising print, custody of securities Annex C
8 % Reduced Electricity, district heating, firewood, live plants, hairdressing, repairs to clothes and shoes, bicycles Annex A
3 % Super-reduced Food, restaurant and catering services, books and press, children's clothing, water, medicines, accommodation, passenger transport, admission to culture and sport Annex B

Which rate applies to which goods and services in Luxembourg?

The rate is not chosen by the seller and it is not derived from the customer. Article 40 works the other way around: a supply is taxed at 8, 3 or 14 percent only if the goods or the service is named in annex A, annex B or annex C of the law. Anything not named anywhere falls to 17 percent by default. The question is never "what rate does my shop use", it is "is this line item in an annex".

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Why is the food 3 percent while the beer in the same order is 17 percent?

Because the rate follows the article, not the place of consumption, and the annexes carve alcohol out by name. Annex B, point 1 gives 3 percent to "food products intended for human consumption, excluding alcoholic beverages". Annex B, point 9 gives 3 percent to "restaurant and catering services, excluding those services or the part of those services relating to alcoholic beverages". Annex C, point 1 then puts wine of fresh grapes of 13 degrees or less at 14 percent, except fortified, sparkling and liqueur wine.

Read together, one restaurant bill can legitimately carry three rates: the meal at 3 percent, a glass of still wine at 14 percent, a beer or a spirit at 17 percent. The law says "the part of those services" on purpose. The split happens per line, not per ticket, which is why a till that stores one rate per sale instead of one per article gets Luxembourg hospitality wrong. Our accounting software comparison treats per-article rates as a minimum requirement for that reason.

Does takeaway have a different VAT rate than eating in?

No. Luxembourg does not split the restaurant rate by where the food is eaten. Annex B covers the food at point 1 and the restaurant service at point 9, so the prepared meal is 3 percent either way. Only the alcohol carve-out moves a line to 14 or 17 percent.

When did Luxembourg VAT rates last change?

On 1 January 2024. The temporary cut for 2023 had lowered the standard rate to 16 percent, the intermediate rate to 13 percent and the reduced rate to 7 percent. Circular 812-1 of 27 December 2023 confirms that those provisions expired on 31 December 2023 and that the rates returned to 17, 14 and 8 percent. The super-reduced rate stayed at 3 percent throughout.

Who has to charge Luxembourg VAT at all?

A Luxembourg established business can stay outside the system under the small enterprise scheme while its national turnover stays under 50 000 euros in the previous and the current calendar year, a threshold raised from 35 000 euros on 1 January 2025, with a 10 percent tolerance in the year it is crossed. Above that, returns go through the eCDF platform, mandatory for all VAT returns since 1 January 2020: annual only below 112 000 euros of turnover, quarterly between 112 000 and 620 000 euros, monthly above.

If an audit is on the horizon, the audit file is the next thing to get right. See what a FAIA export is and who must produce one, and if your accountant has a say, the five questions to ask a fiduciaire before buying.

Questions and answers

Is the Luxembourg standard VAT rate still 17 percent in 2026?
Yes. The 16 percent standard rate was a temporary measure for the 2023 calendar year only. Circular 812-1 of 27 December 2023 confirms the return to 17 percent from 1 January 2024, and article 39(3) of the coordinated VAT law still reads seventeen percent.
Which VAT rate applies to wine in a Luxembourg restaurant?
Wine of fresh grapes of 13 degrees or less is listed in annex C, so 14 percent. Fortified wine, sparkling wine and liqueur wine are excluded from annex C and fall to the standard 17 percent, as do beer and spirits.
Do I need to charge VAT if I earn under 50 000 euros in Luxembourg?
Not necessarily. The small enterprise scheme exempts supplies by a Luxembourg established business whose national turnover stayed under 50 000 euros in the previous and current calendar year, with a 10 percent tolerance in the year of crossing. The exemption is optional and it blocks input VAT deduction.
Where are Luxembourg VAT returns filed?
On the eCDF platform run by the state IT centre CTIE. Electronic filing has been mandatory for all VAT returns and recapitulative statements since 1 January 2020, either by online form or by XML upload from accounting software.

Sources

Every price and fact above was checked against these pages on the date shown.

  1. [1] Loi modifiée du 12 février 1979 concernant la TVA, texte coordonné au 1er janvier 2026 (art. 39, art. 40, annexes A, B, C) accessed 2026-11-11
  2. [2] AED, Taux nationaux applicables, Portail de la fiscalité indirecte accessed 2026-11-11
  3. [3] Circulaire n° 812-1 du 27 décembre 2023, taux de TVA applicables à partir du 01.01.2024 accessed 2026-11-11
  4. [4] Guichet.lu, Déclaration de TVA, dépôt eCDF, périodicité et seuils accessed 2026-11-11
  5. [5] AED, The new Special Scheme for Small Enterprises, FAQ, national threshold 50 000 EUR from 1 January 2025 accessed 2026-11-11
Topics vatluxembourgtaxaccounting