Luxembourg VAT rates
| Rate | Applies to |
|---|---|
| 17% | Standard rate: most goods and services |
| 14% | Parking rate: some wines, fuels |
| 8% | Gas, electricity, hairdressing |
| 3% | Food, books, medicines |
The lowest standard rate in the EU.
Adding Luxembourg VAT
€100.00 before VAT is €117.00 including 17% VAT. To take 17% VAT out of a price, divide it by 1.17. The VAT fraction is 17/117.
That is 3 percentage points lower than the UK standard rate of 20%.
Selling to Luxembourg from the UK
Goods you export from Great Britain to a business in Luxembourg are zero rated for UK VAT. Your customer pays 17% import VAT when the goods arrive, unless you agree to sell delivered duty paid. For goods sent to consumers in parcels worth up to €150, you can collect Luxembourg VAT at the checkout through the EU's Import One Stop Shop (IOSS), and since 1 July 2026 a flat €3 customs duty applies per item.
Services you sell to Luxembourg businesses are usually outside the scope of UK VAT, and your customer accounts for 17% VAT under the reverse charge. Digital services sold to consumers in Luxembourg carry Luxembourg VAT from the first euro, normally declared through the non-Union OSS. The EU VAT guide for UK businesses covers each case.
Reduced rate categories are a summary. Confirm the rate for a specific product in the European Commission's Taxes in Europe Database.