Register for VAT in Luxembourg

Are you supplying, or looking to supply goods to Luxembourg? If your business was not established in the country, you will likely be affected by the EU VAT (Value Added Tax) directive. Whether you are inside or outside the EU, you are likely to have to register for non-resident VAT.

Do I need to register for VAT in Luxembourg?

The circumstances in which you will have to register for Luxembourgian VAT include:

  • Buying and selling goods or services in Luxembourg
  • Selling and shipping goods contained in Luxembourg to buyers outside of Luxembourg
  • Importing goods to Luxembourg from inside the EU
  • Storing goods or other physical property in Luxembourg
  • Selling online goods or services to buyers in Luxembourg*
  • Holding events in Luxembourg with paid admission

* when exceeding Distance Selling thresholds

If your business is currently or potentially affected by any of these factors, you are legally required to appoint a tax representative to register for VAT on your behalf. Contact us for a free consultation on your business’s unique VAT requirements.

What are the VAT rates in Luxembourg?

The standard rate of VAT in Luxembourg is 17%. A 3%, 8% or 14% rate of reduced VAT applies to certain products based on specific criteria.

What are the VAT return periods in Luxembourg?

VAT returns must be submitted monthly, quarterly or annually, depending on the company’s turnover. Returns must be submitted before the 15th day of the month following the tax period; or by February 28th for annual returns.

Luxembourg does require that you submit an annual summarising return, filed before April 30th of the following year.

What is the Distance Selling threshold in Luxembourg?

The distance selling threshold, which determines whether you need to pay VAT for sales to Luxembourgian customers, is €100,000.

What is the Intrastat threshold in Luxembourg?

The Intrastat threshold, which affects the movement of goods between Luxembourg and another EU state, is €200,000 for arrivals and €150,000 for dispatches.

What if I sell goods on Amazon?

Many online sellers who are trading via Amazon make use of their Fulilment By Amazon (FBA) service. In order to trade faster and easier across Europe, companies use Amazon to store, pick, pack and deliver your products to the buyer’s local address.

Even though you may think that you’re making sales from you’re home country, Amazon holds the goods locally and the product would therefore be considered as a local sale, and subsequently liable for VAT.

VAT is the responsibility of the seller, not Amazon, and you can face heavy fines for not registering and/or paying VAT.