Pre-2023 VAT Rates Reinstated in Luxembourg

The temporary reduction of value added tax (VAT) rates in Luxembourg, applicable in 2023, has come to an end.

As of Monday 1 January 2024, the pre-2023 VAT rates of 17%, 14% and 8% have been reinstated.

In autumn 2022, in the context of high inflation, the Luxembourg government agreed to temporarily reduce VAT rates by 1% in 2023 to 16% (standard rate), 13% (intermediate rate) and 7% (reduced rate). The super-reduced rate of 3% remained unchanged.

This temporary measure expired on 31 December 2023.

The current VAT rates in Luxembourg are 17% (standard), 14% (intermediate), 8% (reduced) and 3% (super-reduced). The different rates apply to the delivery and imports of certain types of goods and services, as outlined in the VAT law of 12 February 1979.