VAT Taxable Transactions
VAT is levied on the supply of goods and services.
VAT Standard Rate
The standard rate of VAT is 15%. The Finance Minister has announced a planned increase in VAT rates sometime in 2015.
VAT Reduced Rate(s)
The reduced rates of VAT are 12% (wines, advertising and printed marketing materials), 6% (gas and electricity) and 3% (e-books, printed materials, water, pharmaceuticals, most food products and radio and television broadcasting services).
VAT Exempt Transactions
Financial, banking, insurance and reinsurance, health and medical services as well as leasing of immovable property are exempt from VAT in Luxembourg.
VAT Registration Threshold
The registration threshold for VAT purposes in Luxembourg is €10,000 (to be increased to €25,000 from 1 January 2013).
VAT Filing & Payment
Filing of VAT returns and the payment of VAT liability is made every 1 or 3 months.
As of 1 January 2013, submission of the VAT return should be done only electronically.