Regulatory updates - Luxembourg

The 2024 rates will be the following:

• Standard VAT rate: 17% (up from 16%);
• Intermediate reduced VAT rate: 14% (up from 13%) on certain goods and financial services;
• Reduced VAT rate: 8% (up from 7%) on certain goods and services such as gas & electricity;
• Super reduced VAT rate: 3% (no change).

The amended VAT rates, which entails a 1% drop in all categories, will apply from January 2023. The changes include:

• 16% (previously 17%) will apply to the sales of all goods and services that do not fit the criteria to adhere to any lower VAT rate.
• 13% (previously 14%) will apply to specific goods and services, such as:
• Certain financial services, namely in the management of securities;
• Various materials to be consumed as fuel, including solid combustibles and wood;
• Cleaning preparations, including detergent and more.
• 7% (previously 8%) will apply to specific goods and services, such as:
• Electricity
• Gas
• Heat from heating systems
• Bicycle repair and more.

The 3% reduced rate in Luxembourg will remain unchanged.

• 18 May 2022 for large companies (5 months after the law's entry into force);
• 18 October 2022 for medium-size companies (10 months after the law's entry into force);
• 18 March 2023 for small and newly created businesses of all sizes (15 months after the law's entry into force).

The electronic invoices in Luxembourg will have to be sent via the Peppol network. Pagero is accredited and approved by Authorities for transactions in all Peppol regions.

Further information on the new law can be found here.