Luxembourg sales tax law for 2019 VAT and Sales Tax Rates in Luxembourg for 2019

Luxembourg VAT Rate

Luxembourg VAT & Sales Tax

15.00%

About €15 tax on a €100 purchase
Exact tax amount may vary for different items

The current Luxembourg VAT (Value Added Tax) is 15.00%.

The VAT is a sales tax that applies to the purchase of most goods and services, and must be collected and submitted by the merchant to the Luxembourg governmental revenue department.

Luxembourg has one of the lowest VAT tax rates in the world, charging a maximum VAT rate of 15%.Countries with similar VAT rates include Israel with a VAT of 16%, Spain with a VAT of 16% and Mexico with a VAT of 16%.

Luxembourg Sales Tax Rate
VAT/Sales Tax Reduced VAT Rate World VAT Rank
15% None 27th of 34

Luxembourg VAT Refund For Visitors

Visitors to Luxembourg may be able to get a refund of the Luxembourg VAT tax paid on any goods bought for deportation. To get a VAT refund, you must present receipts for the goods purchased (and possibly proof of your deportation of the goods) to a Luxembourg VAT refund station (which are often found in airports, tourist offices, or international travel hubs).

Some localities have a minimum purchase price for which a VAT refund can be claimed, or certain purchase types which cannot be made tax-free. A VAT refund of up to 15.00% of your total expenditures may be refunded for qualifying purchases. Regulations on VAT and sales tax refunds vary across countries and by region, so be sure to check ahead before expecting a Luxembourg VAT refund.

Luxembourg VAT Law For Businesses and Merchants

Businesses in Luxembourg are required to collect a sales tax of 15.00% on behalf of the government, which they must submit to the applicable Luxembourg revenue department in a periodical VAT tax return. Unlike the United States' sales tax, which is only charged on sales to end consumers, the VAT is collected on all sales - even of raw materials.

Businesses may be required to register for a Luxembourg VAT number or other identifier to enable the government to track and verify VAT tax returns. VAT collection is a responsibility of the merchant, and failure to collect and submit the appropriate tax amounts may result in severe penalties.


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