Increase of the Luxembourg VAT rates as of 1 January 2015 confirmed

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Increase of the Luxembourg VAT rates as of 1 January 2015 confirmed

Input - VAT newsletter

January 2015

On 19 December 2014 the law amending the Luxembourg VAT Law has been adopted (Memorial A – N°255 published on 24 December 2014).

Based on this law, and in line with our previous announcements (see our VAT Input of September 2014), the Luxembourg VAT rates increased as of 1 January 2015 as follows.

The VAT rates of 6%, 12% and 15% increased to 8%, 14% and 17%. The VAT rate of 3% remains unchanged.

The standard VAT rate of 17% remains the lowest within the EU.

With regard to these changes in the VAT rates as of 2015, we strongly recommend:

  1. Adapting your accounting systems to apply the correct VAT rates;
  2. Establishing invoicing procedures to apply the correct VAT rates; and
  3. Reviewing contracts and agreements to make amendments, if required.

Please do not hesitate to contact us should you wish to discuss the impact of the increase of the VAT rates on your company.  

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