Luxembourg VAT (TVA) calculator 2026
Add VAT to a net amount or remove it from a gross amount. Luxembourg applies the EU's lowest standard rate at 17%, plus 14% (intermediate), 8% (reduced) and 3% (super-reduced: food, books, pharma).
How this is calculated
- Choose whether to add VAT (TVA) to a net amount or remove it from a VAT-inclusive gross amount.
- To add VAT: multiply the net by 1 plus the rate (x1.17 for the 17% standard rate). To remove VAT: divide the gross by 1 plus the rate.
- Select the Luxembourg rate for the supply: 17% standard, 14% intermediate, 8% reduced, or 3% super-reduced.
FAQ
What are Luxembourg's VAT rates in 2026?
Luxembourg has four VAT rates: 17% standard (the lowest standard rate in the EU), 14% intermediate (e.g. wine, certain fuels, advertising), 8% reduced (e.g. gas, electricity, hairdressing, shoes, clothing), and 3% super-reduced (e.g. food, books, medicines, passenger transport, hotel stays). Always verify the classification with the AED for specific supplies.
Why is Luxembourg's standard VAT rate the lowest in the EU?
Luxembourg has maintained a low standard VAT rate as part of its broader fiscal and competitiveness policy. The rate has been 17% for many years. Some digital service providers historically based their EU operations in Luxembourg to benefit from the lower rate, though EU VAT reforms since 2015 now require digital services to be taxed at the customer's country rate.
When must a business register for VAT in Luxembourg?
Businesses that exceed the annual turnover threshold for taxable supplies in Luxembourg must register for VAT with the AED. Voluntary registration is also possible. The specific threshold and rules should be confirmed with the AED, as they can change and depend on the nature of the supplies.
Official sources
Data last verified 2026-07-18 · tax year 2026 · 12 sourced values
Every rate, threshold and formula is read from a versioned dataset of official primary sources — no numbers are hardcoded. Values without a published 2026 primary source are flagged, never guessed.
4 sources
- CCSS Luxembourg — Employee pension contribution 8.5% (branche pension)
- ACD (Administration des contributions directes) — Forfait frais de deplacement EUR 540/year (minimum deductible)
- ACD (Administration des contributions directes) — Contribution fonds pour l emploi 7% (standard band)
- AED (Administration de l enregistrement des domaines et de la TVA) — TVA taux normal 17%
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.