Luxembourg VAT / Sales Tax
Detailed vat / sales tax rates and rules for Luxembourg in 2026.
VAT / Sales TaxEUR
Luxembourg has the EU's lowest standard VAT rate at 17%, with reduced rates of 14%, 8%, and a super-reduced rate of 3%. This low VAT rate has historically attracted e-commerce businesses, though EU rules on the place of supply for digital services have reduced this advantage.
Standard Rate
17%
Registration Threshold
€35,000 in annual turnover
Reduced Rates
14% — Wine, advertising printed matter, certain mineral oils, management of credit and credit guarantees8% — Gas, electricity, cut flowers, clothing, shoes, restaurant services, cleaning services3% — Food, non-alcoholic beverages, books, newspapers, pharmaceutical products, children's clothing, hotel accommodation, passenger transport
How Luxembourg VAT / Sales Tax compares
Luxembourg’s standard VAT / sales tax rate of 17% is the 79th highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and Europe’s regional average of 19.9%.
Luxembourg
17%
Europe average
19.9%
Global average
13.7%
