These past few weeks have brought plenty of news that will
impact the Luxembourg VAT practice. You will find hereafter a
summary of the key elements.
Temporary reduction of the Luxembourg VAT rates
On 20 September 2022, the Luxembourg Prime Minister announced
that the Government, the employer representatives and the trade
unions reached a gentlemen agreement on an anti-inflation package
of more than one billion euros aiming to help households and
businesses. Among the measures to be introduced by this package, it
has been agreed to temporarily lower the following Luxembourg VAT
rates by 1%:
- The standard VAT rate of 17% will be lowered to 16%
- The intermediary VAT rate of 14% will be lowered to 13%
