On 27 December 2023, the Luxembourg Directorate of Registration, Domains, and VAT issued Circular No. 812-1 of 27 December 2023, which declared the end of the temporary reduction in VAT rates as mandated by the Law of 26 October 2022.
As previously mentioned, the rate reductions were as follows:
- The standard rate was reduced from 17% to 16%
- The intermediate rate was reduced from 14% to 13%
- The reduced rate was reduced from 8% to 7%
Effective from 1 January 2024, the rates will revert to the standard rate of 17%, the intermediate rate of 14%, and the reduced rate of 8%.