Luxembourg

The VAT small-business threshold in Luxembourg is €50,000 of annual turnover. The standard VAT rate is 17%.

SME exemption for annual turnover up to €50,000; no sectoral thresholds. If the threshold is exceeded by no more than 10%, the exemption remains until the end of the calendar year.

Since 1 January 2025, Luxembourg also applies the EU cross-border small-business exemption: a business established in another member state can use Luxembourg’s threshold if its EU-wide turnover stays within €100,000 in the current and previous year. It files one prior notification in its home country, receives an identification number ending in EX and files quarterly reports there. 10% transitional tolerance.

Figures come from the tax authority and European Commission pages listed under Sources, as they stood on 30 September 2026. General information, not tax advice.

Questions

What is the VAT threshold in Luxembourg?

The VAT small-business threshold in Luxembourg is €50,000 of annual turnover.

What is the standard VAT rate in Luxembourg?

17%. Reduced rates: 8%; super-reduced 3%; parking 14%.

Compare every country in the VAT registration thresholds table. How the EU-wide €100,000 limit works: EU SME VAT scheme.