Luxembourg has enacted a law implementing a VAT scheme for small businesses. VAT obligation exemption threshold has been increased to EUR 50,000 starting 1 January 2025, with a 10% tolerance, allowing businesses to benefit from the scheme up to EUR 55,000.
This announcement was made in a release on 11 December 2024.
Luxembourg-based companies, small businesses in other EU member states will also be eligible for the scheme, provided they register for the cross-border exemption scheme in their home country.
Additionally, Luxembourg businesses will be able to apply the scheme in other EU countries if their total turnover within the Union does not exceed EUR 100,000. To participate, Luxembourg businesses must register through MyGuichet.lu and report their turnover quarterly for each EU member state where they operate.
