In an effort to reduce the impact of inflation on households and
businesses, the Luxembourg government met with trade unions on 28
September to agree a new package of measures.
It was agreed that the standard VAT rate be lowered from 17% to
16%, the intermediate rate from 14% to 13% and the reduced rate
from 8% to 7%.
For the record, four rates are currently applicable in
Luxembourg:
- a normal rate of 17 % for taxable operations other than those
listed below
- a super-reduced rate of 3 % for operations involving goods and
services listed in Appendix B to the VAT law, for instance food
products for human consumption excluding alcoholic beverages,
therapeutic articles, various books and newspapers as well as
clothing for children under 14 years old
