Luxembourg Temporarily Reduces VAT Rates

November 8, 2022

Luxembourg has published an amendment to the VAT Act, which includes a provision temporarily reducing current VAT rates by 1%. 


The new VAT rates will be effective between January 1 and December 31, 2023.

The new rates

The VAT rates will change as follows:

  • Standard rate ‚Äď lowered from 17% to 16%
  • Intermediate rate ‚Äď lowered from 14% to 13%
  • Reduced rate ‚Äď lowered from 8% to 7%

The reduction does not apply to the super-reduced rate, which will remain at 3%.

Companies must be ready to update their systems once the new rates are effective, and modify them again when the temporary reduction ends.

How Fonoa can help

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Mil√°n Z√°modics
Tax Researcher

Mil√°n is an indirect tax professional specialized in VAT and tax compliance. Before joining Fonoa, he worked at EY Hungary, providing indirect tax advisory and compliance services for a wide range of international and local clients from all industries. He also worked with digital tax products that automate tax processes.