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.
«
Previous post
Egypt: Customs Tariffs on Luxury Goods
Egypt: Customs Tariffs on Luxury Goods
Related Posts
CJEU Advocate General supports Luxembourg’s ATAD transposition on securitisation entities from interest limitation rules
June 22, 2026
The Advocate General (AG) Juliane Kokott of the Court of Justice of the European Union (CJEU) has issued her opinion in Case C-138/24, involving an infringement claim by the European Commission against the Grand Duchy of Luxembourg on 18 June
Read More
Luxembourg issues VAT guidance for photovoltaic (PV) solar installations
June 11, 2026
Luxembourg's tax administration has issued a circular on 1 June 2026, clarifying the VAT treatment of photovoltaic (PV) installations, setting out how VAT obligations and deduction rights apply depending on how the electricity generated by the
Read More
Luxembourg updates Pillar Two FAQs with new registration, GIR filing guidance
June 10, 2026
The Luxembourg Administration of Direct Tax (ACD) has released an updated Frequently Asked Questions (FAQs) document on the Pillar Two global minimum tax rules introduced under the Law of 22 December 2023 (the Pillar Two Law), providing further
Read More
Luxembourg publishes list of jurisdictions for automatic GloBE GIR exchange
June 04, 2026
Luxembourg has published the Grand-Ducal Regulation of 26 May 2026 in the Official Gazette, setting out the list of jurisdictions with which it will automatically exchange information from GloBE Information Returns (GIRs) in relation to the global
Read MoreLuxembourg, Vietnam tax treaty protocol enters into force
June 03, 2026
The amending protocol to the 1996 income and capital tax treaty between Luxembourg and Vietnam entered into force on 14 April 2026. The agreement seeks to prevent double taxation and fiscal evasion between the two nations Signed on 4 May 2023,
Read MoreLuxembourg implements Pillar One ‘Amount B’ simplified transfer pricing rules
April 22, 2026
The Luxembourg tax administration issued Circular L.I.R. n° 56/2 – 56bis/2 on 13 April 2026, introducing a simplified and rationalised approach for applying the arm’s length principle to baseline marketing and distribution activities, referred
Read More