Luxembourg VAT (TVA) Guide for 2026: Rates, Registration & Compliance
Luxembourg has the EU's lowest standard VAT at 17%, with reduced 14%, 8%, and 3% bands. This guide explains registration, OSS, and filing requirements.
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Key Takeaways
Luxembourg applies a standard VAT (TVA) rate of 17% — the lowest standard rate in the EU — to most goods and services, including SaaS and digital products, with a 14% intermediate rate for certain wines and printed goods. A non-established business must register as soon as it makes taxable supplies, with no threshold; for EU-wide B2C distance sales, VAT is due once sales exceed the EU-wide EUR 10,000 threshold. Most financial and insurance services, medical and hospital care, and education are exempt; exports and intra-EU B2B supplies are zero-rated.
Taxability Snapshot
SaaS
Taxable
Digital Goods
Taxable
Sales Tax Rates
Luxembourg applies a standard VAT (TVA) rate of 17% to most goods and services, including SaaS and digital products sold to consumers. Reduced and special rates apply to specific categories:
Rate | Applies to |
|---|---|
17% (standard) | most goods and services, SaaS, and digital services; the lowest standard rate in the EU |
14% (intermediate) | certain wines, printed advertising, heating oils, securities custody |
8% (reduced) | electricity, gas, district heating, hairdressing, minor repairs |
3% (super-reduced) | food, books and e-books, medicines, children's clothing, passenger transport, hotels and restaurants, water |
Electronically supplied services are taxed where the customer is located, so a foreign SaaS seller charges Luxembourg VAT on B2C sales and reports it through the EU One Stop Shop (OSS).
Luxembourg VAT Calculator
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Luxembourg · TVARates as of September 2026. Source: Luxembourg VAT law 2026, Annex C (opens in a new tab); Luxembourg indirect-tax portal: national VAT rates (opens in a new tab).
Luxembourg · Standard rate
17%
TVA rate
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This is an estimate. Whether a sale is taxable, and at which rate, depends on what you sell, who you sell to and where it's supplied. If you intend to rely on these rates, please use the Kintsugi platform.
Registration & nexus threshold
Luxembourg uses VAT registration rules rather than US-style economic nexus. A non-established business must register as soon as it makes taxable supplies in Luxembourg, with no threshold [2]. For cross-border B2C sales within the EU, VAT is due in the customer's country once total EU distance sales exceed the EU-wide EUR 10,000 threshold, reportable through the One Stop Shop [2]. Registration steps are in the How to Register section.
Filing frequency & deadlines
Luxembourg VAT filing frequency depends on turnover: monthly above EUR 620,000, quarterly between EUR 112,000 and EUR 620,000, and annual below EUR 112,000. Periodic returns and payment are due the 15th of the following month; small annual filers submit their annual return by 1 March, while monthly and quarterly filers submit a recapitulative annual return by 1 May, filed through the eTVA/eCDF portal.
Exemptions
Exempt supplies include most financial and insurance services, medical and hospital care, education, and the letting of immovable property. Exports and intra-EU B2B supplies are zero-rated.
Penalties
Late registration, late or incorrect filing, and late or non-payment each carry fines of EUR 250 to EUR 10,000 per infringement, with an evasion penalty of 10% to 50% of the amount concerned and interest on unpaid VAT.
Sources
[1] European Commission — VAT rates (Luxembourg 17% standard, 8% and 14% reduced, 3% super-reduced)
[2] European Commission — One Stop Shop (EU-wide EUR 10,000 threshold)
[3] Luxembourg Registration Duties, Estates and VAT Authority (AED) — VAT (TVA)
Verified July 2026 against European Commission and Luxembourg AED guidance.
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