The Luxembourg Prime Minister announced on 10 April 2013 that, the standard VAT rate will increase as from 2015, but the new rate has not yet been announced. The standard VAT rate is presently 15percent and is the lowest in the EU. The Luxembourg government wishes to keep the lowest standard VAT rate in the European Union despite the need to increase the rate. An increase to 17 percent or 18 percent is most likely as this would not take the rate higher than Cyprus and Malta (both 18%) and would therefore maintain Luxembourg’s competitive position.
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