VAT in Luxembourg in 2026

Consultoria EHERO

5 minutos de lectura

Luxembourg has the lowest standard VAT rate in the entire European Union: 17%. And below that, three more bands: an intermediate rate of 14%, a reduced rate of 8%, and a super-reduced rate of 3%. Four rates, just like France, but starting four points lower than Spain.

Type	Percentage	Applies to
Standard (taux normal)	17 %	Default regime for goods and services
Intermediate (taux intermédiaire)	14 %	Goods and services in Annex C of the 1979 VAT law
Reduced (taux réduit)	8 %	Goods and services in Annex A of the 1979 VAT law
Super-reduced (taux super-réduit)	3 %	Goods and services in Annex B of the 1979 VAT law

Rates verified on 8 September 2026 against the “Taux nationaux applicables” sheet on Luxembourg’s indirect tax portal (pfi.public.lu).

The EU’s lowest rate, and why that is not an advantage for you

It is easy to read 17% as an opportunity. It is not: since the one-stop shop exists, VAT is set by the buyer’s country, not the seller’s. Selling to Luxembourg at 17% does not make you cheaper, because your local competitors apply exactly the same rate.

Where 17% does matter is the other way around: if you buy services from a Luxembourg supplier —and many digital services have their European headquarters there— the VAT shown on that invoice is theirs, not the Spanish one, and in an intra-EU business-to-business transaction it should not even appear.

A warning if you use old tables: in 2023 Luxembourg applied a temporary one-point reduction to three of its four rates. That reduction is no longer in force; the current rates are those in this table. It is an error that still circulates in outdated comparisons.

Which VAT you charge customers in Luxembourg if you sell from another EU country

This is the part no rate table covers, and usually the real question. The rate you charge does not depend only on the destination: it depends on how much you sell to consumers in other EU countries.

Below €10,000 a year in distance sales to the rest of the EU — added up across all countries, not country by country — you charge your own country’s VAT.
Above that €10,000 you charge the destination VAT: 17% as the standard rate in Luxembourg, or the reduced rate that applies to the product. You declare it through the One Stop Shop (OSS) in your own country, with no need to register in the destination country.

The threshold adds up all your B2C sales to other EU countries plus digital services, and the switch does not wait for next year: the very sale that crosses the threshold already carries the destination rate.

Selling to a business with a valid EU VAT number is a different story: the sale goes without VAT because the customer accounts for it in their own country, but you have to check that number in VIES and keep proof of the check.

How to set this up in WooCommerce

WooCommerce includes rates by country, but it does not distinguish rates within a country by product class or monitor the threshold for you. There are three things you need to set up:

A tax class for each rate you use, assigned product by product and not at store level.
VAT ID validation at checkout against VIES for business customers, so VAT is not charged when the transaction is subject to reverse charge.
A control for the €10,000 threshold, because the day it is exceeded the rates change at once across all countries.

All three are covered by EHERO Woo VAT, which we built precisely because these are the three points where stores selling to the rest of the European Union break down.

Two quick checks: check the customer’s VAT number in VIES before invoicing without VAT, and use the EU VAT calculator to see which rate to charge on each sale.

Selling to other EU countries from WooCommerce?

EHERO Woo VAT applies each country’s rate product by product, checks VAT numbers against VIES at checkout and keeps an eye on the €10,000 threshold for you.

See EHERO Woo VAT →

Frequently asked questions

What is the standard VAT in Luxembourg in 2026?

17%, the lowest standard rate in the European Union. Alongside it are an intermediate rate of 14%, a reduced rate of 8%, and a super-reduced rate of 3%.

Is it worth invoicing from Luxembourg to pay less VAT?

No. With the one-stop shop, in sales to final consumers the applicable VAT is that of the buyer’s country, not the seller’s. The Luxembourg rate only applies to Luxembourg buyers.

I sell to Luxembourg from another EU country — which VAT do I charge?

Your own country’s VAT while your distance sales to the whole EU stay below €10,000 a year. Once you cross that threshold, the destination VAT (17% standard rate), declared through the One Stop Shop.