Luxembourg · 2026
Luxembourg VAT calculator
Luxembourg charges value added tax, known locally as TVA, at four different levels. The headline rate of 17% is the lowest standard VAT rate anywhere in the European Union, and three lower bands of 14%, 8% and 3% cover a long list of everyday purchases. This calculator adds TVA to a net figure or extracts it from a gross one at whichever band applies.
How it works
- Pick the band that matches the purchase. Luxembourg uses 17% as the catch-all, 14% for a narrow set of goods such as light still wines and heating fuels, 8% for household energy and personal services, and 3% for essentials like groceries, medicines and books.
- Adding tax means multiplying the net amount by the rate: a EUR 200 net invoice at 17% picks up EUR 34 of TVA and totals EUR 234.
- Stripping tax out of a gross figure means dividing by 1 plus the rate as a decimal. EUR 234 divided by 1.17 gives the EUR 200 net amount, and the EUR 34 difference is the TVA.
gross = net × (1 + r) and net = gross ÷ (1 + r)
Take the band percentage, convert it to a decimal and add 1. Multiplying a net price by that factor produces the gross price; dividing a gross price by it recovers the net. The TVA itself is always the gap between the two figures.
- net
- price before TVA
- gross
- price including TVA
- r
- rate as a decimal: 0.17, 0.14, 0.08 or 0.03
Standard VAT rates, Luxembourg and its neighbours
| Luxembourg | 17% | Lowest standard rate in the EU |
| Germany | 19% | 7% reduced band |
| France | 20% | 10%, 5.5% and 2.1% lower bands |
| Belgium | 21% | 12% and 6% lower bands |
| EU legal minimum | 15% | Floor set by the EU VAT Directive |
Worked example
A consultant in Luxembourg City bills EUR 1,500 net for a project at the standard 17% rate so the invoice shows EUR 255 of TVA and a total of EUR 1,755. Had the client only seen the gross figure, dividing EUR 1,755 by 1.17 recovers the EUR 1,500 fee.
Key facts
- Luxembourg’s 17% is the lowest standard VAT rate in the European Union, two points above the legal floor of 15%.
- Four positive rates operate at once: 17%, 14%, 8% and 3%, one of the widest spreads in the EU.
- The 3% band is broad by European standards, taking in restaurant food, passenger transport and digital publications.
- A one-year anti-inflation cut applied during 2023 only; the permanent rates returned on 1 January 2024.
- TVA is administered by the AED, a separate authority from the ACD that handles income tax.
Tips
- Cross-border shoppers and remote sellers should note that the place-of-supply rules, not the seller’s location, usually decide whether Luxembourg’s low rates apply.
- Renovating a main residence? The 3% housing scheme is claimed through the AED, either as a refund or applied directly on builder invoices, and is capped per dwelling, so file before the works rather than after.
- On a restaurant bill, the meal carries 3% but alcoholic drinks carry 17%, so a receipt can legitimately mix bands.
Frequently asked questions
What does the 17% standard rate cover?+
Everything that has not been assigned to a lower band: adult clothing, electronics, furniture, vehicles, alcohol, petrol and diesel, and most professional and digital services. Article 39 of the Luxembourg VAT law sets 17% as the default.
What falls under the unusual 14% intermediate band?+
A short list set out in Annex C of the VAT law: still wines of 13% alcohol or less, solid mineral fuels and mineral oils used for heating, printed advertising material, and the safekeeping and management of securities. Few other EU countries operate a band like this.
When does the 8% reduced rate apply?+
Mainly to household energy (electricity, gas and district heating supplies), plus labour-heavy services such as hairdressing, repairs to bicycles, shoes and clothing, domestic cleaning, and ornamental plants and cut flowers.
What qualifies for the 3% super-reduced rate?+
Essentials and culture: food and non-alcoholic drinks, water, pharmaceuticals, books, newspapers and periodicals (print and digital), children’s clothing and shoes, restaurant meals excluding alcoholic drinks, passenger transport and admission to cultural venues. Building or renovating a main residence can also attract 3%, subject to AED approval and a cap per dwelling.
Did the rates not change recently?+
Yes. For the 2023 calendar year only, the government cut the top three rates by one point (16%, 13% and 7%) to soften inflation. The cuts lapsed on schedule and the 17%, 14% and 8% rates returned on 1 January 2024. The 3% band was never touched.
Who has to register for TVA in Luxembourg?+
Businesses register with the AED before charging TVA. Small domestic businesses with annual turnover under EUR 50,000 can opt for the franchise regime and invoice without TVA, though they then cannot deduct input tax.
Things to watch
- This tool gives an arithmetic estimate only and is not tax advice. Band boundaries turn on fine legal definitions in the VAT law annexes, so confirm the treatment of a specific product with the AED or a qualified adviser before relying on it.
- Exempt supplies, such as most financial and insurance services, are outside the bands entirely and are not the same as zero or 3% rated sales.
Sources
- Value Added Tax (VAT) · Guichet.lu (Luxembourg government)
- Portail de la fiscalité indirecte, TVA · AED (Administration de l’enregistrement, des domaines et de la TVA)
- Changes in VAT rates in certain EU Member States applicable on 1 January 2024 · European Commission
Last updated: 2026-06-10 · Applies to 2026
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with the official sources listed before making decisions.
- Rates shown are those in force since 1 January 2024 and confirmed for 2026.
- The annexes to the Luxembourg VAT law (Annexes A, B and C) define precisely which goods sit in each band; check the AED portal for borderline items.
Reviewed by Vikas Dulgunde.