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.
Sources and verification
Dataset last reviewed 2026-07-18 · tax year 2026 · 17 documented values
Rates and thresholds use official primary sources where available, reputable secondary sources when primary access is unavailable, and clearly labelled derived formulas. Each value retains its verification status.
9 sources
- CCSS Luxembourg — Employee pension contribution 8.5% (branche pension)
- Securite sociale Luxembourg / CCSS — Art. 377 CSS — abattement = 1/4 SSM; SSM 2,771.33 (01.06.2026) -> EUR 692.83/month
- ACD (Administration des contributions directes) — Forfait frais de deplacement EUR 540/year (minimum deductible)
- ACD (Administration des contributions directes) — ACD - Fonds pour l'emploi: 'Depuis l'annee d'imposition 2013, le taux de la majoration est de 7% et, au-dela d'un revenu imposable ajuste de 150 000 EUR ... ou de 300 000 EUR en classe d'impot 2, de 9%'
- ACD (Administration des contributions directes) — ACD Baremes d'impot online calculator, tax year 2025, classe 1: taxable 150,000 -> Fonds pour l'emploi 3,261.00, Total du 49,851.00; taxable 200,000 -> Fonds pour l'emploi 5,082.00, Total du 71,910.00
- AED (Administration de l enregistrement des domaines et de la TVA) — TVA taux normal 17%
- European Commission - Your Europe — Your Europe (European Commission) - VAT rules and rates: Luxembourg standard 17%, parking 14%, reduced 8%, super-reduced 3%
- CCSS (Centre commun de la securite sociale) - Independants — CCSS - Independants, assiette de cotisation: 'Un montant minimum (le salaire social minimum) et un montant maximum (5 fois le salaire social minimum) de cotisation s'appliquent pour les risques maladie, pension et accident'
- ACD (Administration des contributions directes) — ACD - Baremes: 'le tarif de l'impot sur le revenu applicable aux personnes physiques est le meme pour toutes les categories de revenus quelle qu'en soit la nature'
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.