Luxembourg VAT 2026: what actually changes
No movement on the four rates. The deadline that actually affects a Luxembourg retailer or online seller comes from France, not the Grand Duchy.
Insights & analysis
Insights: understanding Luxembourg fiduciary, tax and structures
Clear, factual analysis on accounting, tax, company formation, holdings and funds in Luxembourg, by a licensed accounting firm (auth. 10077274). Each analysis links to our detailed expertise hub.
Latest articles
ATAD and substance: five costly mistakes
Article 166 LIR remains solid. What is lost on audit is the ability to show the company held, decided and bore the risk.
Cross-border remote work: the two 2026 thresholds
Confusing the tax threshold with the social security threshold is the costliest payroll error. They are independent, and one is crossed without the other.
Check an EU VAT number: what VIES really proves
A "valid" VIES answer only holds for the moment you queried it. What defends an audit is the record you kept of that query.
E-invoicing Luxembourg: public sector obligations
A PDF sent by email does not meet the e-invoicing obligation. The required format is XML, transmitted over the Peppol network, for any company invoicing a Luxembourg public body.
FAIA Luxembourg: the audit file the AED can request
FAIA is never filed spontaneously. The obligation is one of capability, which makes it trickier than a deadline: it only surfaces when it is too late to prepare.
Standard chart of accounts Luxembourg: PCN structure
The PCN has seven classes, not eight. The regulation allows day-to-day bookkeeping outside the standard format: the constraint applies at filing, which catches out groups running an in-house chart.
Mandatory invoice details in Luxembourg: full list
An invoice fully compliant on VAT can still breach company law. The two sets of particulars answer to different authorities and carry different consequences.
VAT reverse charge Luxembourg: cases and setup
The reverse charge is not an exemption. The transaction is taxed, just not by you. Treating it as out of scope produces a false return even though net VAT is nil.
Odoo Community or Enterprise: which edition in Luxembourg
An ERP that performs well elsewhere can fail all four Luxembourg requirements at once. That is the most common scenario among subsidiaries of foreign groups.
B2B e-invoicing Luxembourg: what the bill provides
Between Luxembourg private businesses, a PDF invoice is still lawful today. A bill tabled on 30 July 2026 sets out to change that, on a timetable not yet settled.
Minimum net wealth tax Luxembourg: EUR 535 to 4,815
The minimum net wealth tax in Luxembourg now turns on a single figure: the balance sheet total. A dormant, loss-making company still pays it.
Luxembourg corporate income tax rate: 14%, 16%, 23.87%
The Luxembourg corporate income tax rate is 14% or 16%, but that is never what a company pays. Two layers sit on top, and one band is taxed at 30%.
Municipal business tax in Luxembourg: rates and calculation
Municipal business tax in Luxembourg is not a corporate income tax surcharge: it has its own base, its own allowance and a rate set municipality by municipality. Calculation, 2026 rates and allocation.
Participation exemption recapture rule in Luxembourg
Participation exemption recapture makes a capital gain taxable even though the parent-subsidiary regime covers it. It is prepared year by year, not on the day of the sale.
Participation exemption opt-out in Luxembourg
The participation exemption opt-out has been available since 2025, participation by participation, where loss carryforwards approach their limit.
Net wealth tax reduction in Luxembourg: 5-year reserve
The net wealth tax reduction in Luxembourg trades five euros of locked reserve for one euro of tax saved. The cap, the timing and the traps of the five-year period.
Dividend withholding tax in Luxembourg: 15% and relief
Dividend withholding tax in Luxembourg takes 15% of the gross amount distributed, unless an exemption applies. Conditions, the eight-day deadline and where it disappears.
Accounting for dividends received in Luxembourg
Accounting for dividends received in Luxembourg follows the subsidiary's distribution decision, never the transfer date. Financial year, profit and loss captions and the twelve-month test.
Impairment of participations in Luxembourg
Impairment of participations in Luxembourg is required as soon as the depreciation is expected to be lasting. Trigger, notes disclosure, mandatory reversal and the deferred tax cost.
Intra-group loan interest accruals in Luxembourg
Intra-group loan interest accruals in Luxembourg go on the balance sheet even where nothing is paid. Period allocation, arm's length rate, the article 168bis cap and symmetry between lender and borrower.
Company size thresholds in Luxembourg
Company size thresholds in Luxembourg drive the balance sheet layout, the content of the notes and the statutory audit. Amounts set by the Grand-Ducal Regulation of 25 October 2024, the repetition criterion and newly incorporated companies.
Late filing of annual accounts in Luxembourg
Late filing of annual accounts in Luxembourg follows a graduated ladder of sanctions, from a 50 euro surcharge to being struck off the register. Seven-month deadline, tiers of increased fees, the register manager's penalty payment and administrative dissolution without liquidation.
Form 500 corporate tax return in Luxembourg
The form 500 corporate tax return in Luxembourg brings three taxes together on a single form, filed by 31 December of the following year. Who files, calendar, MyGuichet filing, annexes and what a late return costs.
Quarterly tax advances in Luxembourg: the calendar
Quarterly tax advances in Luxembourg do not follow the current year's result: they reproduce a quarter of the latest assessment. A company whose profit collapses keeps paying on the old basis.
Register of beneficial owners in Luxembourg: RBE filing
The register of beneficial owners in Luxembourg is filed within one month of the event, under a criminal fine of 1,250 to 1,250,000 euros.
Source of funds and source of wealth in Luxembourg
Source of funds and source of wealth are not proved with the same documents: the first covers the money arriving, the second the wealth that produced it.
KYC documents for company formation in Luxembourg
KYC documents for company formation in Luxembourg fall into four blocks held by four different recipients. No text publishes a closed list of them.
Which accountant for an SME in Luxembourg? Criteria 2026
Three distinct professions, only one of them required for most SMEs. The criteria that matter can be checked before signing: business permit, VAT periodicity, software, response times, engagement letter, billing model.
Politically exposed person in Luxembourg: PEP rules
A politically exposed person in Luxembourg is not only a foreign official: family and close associates are covered, and the status outlives the office.
Luxembourg income tax return: who files, when and how
Not everyone has to file a return, but almost everyone benefits from filing one. The difference comes down to a few thresholds and one date.
Student job pay in Luxembourg: contract and 80 % of SSM
A student's summer job is not a discount fixed-term contract: it is a contract of its own, with its age range, duration, pay floor and social regime. An employer who confuses it with an ordinary contract pays too much, or too little.
Luxembourg VAT exemption threshold: the €50,000 rule
The Luxembourg VAT exemption threshold is tested over two years at once, not just the year gone by. That is what makes it lapse mid-year, without warning.
Luxembourg VAT return frequency: the three regimes
Luxembourg VAT return frequency is not a choice: it follows from two turnover thresholds, and the authority alone decides which regime applies.
VAT one-stop shop in Luxembourg: OSS for e-commerce
The VAT one-stop shop in Luxembourg avoids registering in every country where your customers live. It recovers no input VAT borne abroad, however.
Peppol directory in Luxembourg: how to register
The Peppol directory in Luxembourg does not fill itself: publication depends on your access point. Being reachable and being findable are two things.
E-invoicing grant in Luxembourg: 70% of the project
The e-invoicing grant in Luxembourg exists, but it cannot be claimed after the fact: the application is filed before the first euro is committed.
Paying up SARL share capital in Luxembourg: 100%
Paying up SARL share capital in Luxembourg allows no instalments: the whole subscribed amount is in place before the deed is signed, never after it.
Luxembourg administrative dissolution without liquidation
Administrative dissolution without liquidation is not requested and not negotiated: it opens on the State Prosecutor's requisition and closes within six months.
Luxembourg withholding tax on directors' fees
Withholding tax on directors' fees in Luxembourg is no year-end formality: it falls due within eight days, and directors' fees are never deductible for the company that votes them.
Luxembourg start-up tax credit: where the bill stands
The Luxembourg start-up tax credit is listed among the Ministry of Finance's 2026 novelties. The text that carries it, bill 8526, was still in committee on 22 September 2026.
Luxembourg tax allowance for delaying retirement: AMVP
The Luxembourg tax allowance for delaying retirement rewards the employee or self-employed person who could draw an early pension and stays on instead. It has to be claimed, it accrues month by month, and it rests on a certificate issued only once.
Luxembourg interest limitation rule: article 168bis
The Luxembourg interest limitation rule is often read the wrong way round: the cap is the higher of two amounts, it bites on net borrowing costs, and tax EBITDA leaves exempt income out.
Financing company substance in Luxembourg
Financing company substance in Luxembourg is not proved by an address. The circular of 27 December 2016 sets a cumulative list of real presence conditions, and a written comparability analysis.
Annual accounts in a foreign currency in Luxembourg
Annual accounts in a foreign currency are allowed in Luxembourg, but the freedom is bounded and tax still speaks euro. One single currency, share capital, eCDF filing and circular L.G.-A no. 60: what is settled at incorporation is hard to undo later.
Approved statutory auditor or commissaire
Approved statutory auditor or commissaire: three figures and two financial years settle it, not the legal form. Article 35 thresholds, the no-overlap rule of article 69, term of office and the SARL with more than sixty members.
ViDA in Luxembourg: the VAT timetable to 2030
ViDA in Luxembourg is not a single deadline but a staircase: five application dates between 2025 and 2035. Two bills are already before the Chamber of Deputies, and the first step falls on 1 January 2027.
Luxembourg minimum wage: 2026 amounts and rules
The Luxembourg minimum wage stands at EUR 2,771.33 a month for an unskilled worker aged 18 years and over since 1 June 2026. That single figure drives payroll, the contribution base and a tax credit due to be revalued in 2027.
Luxembourg social parameters: 2026 rates and limits
Luxembourg social parameters fit in one table: index 992.24 since 1 June 2026, floor and ceiling contribution bases, and the rate of each branch. Two dates moved in 2026, and pension insurance is no longer at the same rate.
Designated worker Luxembourg: duty and training
A designated worker is required from the very first employee in Luxembourg. What the law demands, and by when.
Finance lease accounting in Luxembourg
Finance lease accounting in Luxembourg follows legal ownership, not economic reality. The substance option, the 40 % to 90 % duration test and the chart of accounts sub-accounts.
Retirement in Luxembourg: conditions and calculation
Retirement in Luxembourg opens at 65 after 120 months of insurance, with two early routes at 60 and 57. The reform voted on 18 December 2025 lengthens the qualifying period and creates a progressive pension.
Tax loss carry-forward in Luxembourg: 17 financial years
Tax loss carry-forward in Luxembourg is no longer unlimited: losses from financial years closed after 31 December 2016 expire after seventeen financial years. Older losses remain carried forward without any time limit.
Investment tax credit Luxembourg: 12% or 18% rates
The investment tax credit in Luxembourg reduces the tax bill itself, not the taxable base: 12% of acquisition value since tax year 2024. A certified digital transformation or ecological transition project lifts the rate to 18%.
Analysis
Annual accounts and RCS filing: what Luxembourg law requires
Every Luxembourg company files annual accounts with the RCS through the eCDF platform within seven months of year-end. Deadlines, LuxGAAP format and penalties explained.
eCDF: filing structured-format accounts in Luxembourg
The eCDF format is mandatory for filing annual accounts and tax returns. How it works, the standard chart of accounts (PCN) and key pitfalls.
SARL or SARL-S: which form to start with in Luxembourg?
The SARL-S lets you start with €1 of capital, without a notarial deed, reserved for individuals. The classic SARL offers more flexibility. A side-by-side comparison.
SOPARFI vs SPF: comparing the two holding vehicles
The SOPARFI is a commercial company usable internationally with participation exemption; the SPF is reserved for passive private-wealth management. The key differences.
ATAD substance: five checkpoints for a Luxembourg structure
Without real economic substance (directors, decisions, local accounts), a Luxembourg holding risks losing tax benefits. ATAD requirements in practice.
Voluntary liquidation of a company: the steps in Luxembourg
Dissolution, appointment of the liquidator, liquidation auditor's report, then closure: the sequence of a voluntary liquidation and its timeline.
RAIF, SIF or SICAR: which fund vehicle in Luxembourg?
The RAIF is not approved directly by the CSSF but through an AIFM; the SIF and SICAR are supervised. A regulatory, tax and operational comparison.
How much does an accountant cost in Luxembourg? Pricing benchmarks
Self-employed, company, SME or group: accounting fee ranges in Luxembourg by turnover and transaction volume, with a simulator.
Switching accountant in Luxembourg: how to transfer your file
Recovering trial balances, ledgers, eCDF access and filing continuity: how to switch firm without disruption, even mid-year.
Our expertise hubs
Company setup & lifecycle
Set up, establish and run your Luxembourg company, without bouncing between providers.
Accounting, accounts & closing
LuxGAAP bookkeeping, reconciliations, closing work, annual accounts, eCDF validation and RCS filing. For SARL, SARL-S, SA, holdings, SOPARFI, SMEs and groups.
Tax, VAT & payroll
Tax returns, VAT, payroll and tax incentives, on time, at the right rate.
Holdings, SOPARFI & wealth
Structuring participation holding and private wealth: SOPARFI, SPF, holding, family office.
Financial direction (CFO)
An outsourced CFO: reporting, management control, treasury, forecasting.
Investment funds
Structuring a fund and keeping its books: RAIF, SIF, SICAR, SCSp, valuation inputs, AIFM support.
Governance & directorship
Directors, substance and corporate secretarial for solid Luxembourg governance.
Regulatory compliance
AML/KYC, DAC6, CRS/FATCA, ESG/CSRD, MiCA: staying compliant in a demanding framework.
A question about your situation? Let's talk.
Free first call within 24 hours. Dedicated adviser, NDA before any confidential document.