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VAT Calculator Luxembourg : Save Time & Money
It can be difficult to understand the complex VAT in Luxembourg, particularly when dealing with the specifics of the tax code. For that reason, we have introduced our VAT Calculator Luxembourg.
Luxembourg VAT calculator is an efficient tool which is designed to save your time and make VAT computation easy. It ensures smooth business operations by ensuring accurate VAT calculations. It can add or remove VAT for you with a single click; the best thing about this tool? It is absolutely free!
Luxembourg VAT Rate
The standard VAT rate in Luxembourg is 17%. This applies to most goods and services unless they are exempt from VAT, have a 0% VAT rate, or fall under one of the reduced VAT rates. Luxembourg also has three reduced VAT rates: 3%, 8%, and 14%.
| Category | VAT Rate | Examples |
|---|---|---|
| Standard Rate | 17% | Most goods and services |
| Exempt | 0% | Insurance, financial services, educational services |
| Reduced Rate (3%) | 3% | Foodstuffs, pharmaceuticals, books, newspapers, passenger transport |
| Reduced Rate (8%) | 8% | Restaurant services, some types of fuel, specific cultural goods |
| Reduced Rate (14%) | 14% | Certain types of wine, some energy sources, advertising brochures |
Also visit; Vat Calculator Cyprus
How to calculate vat in Luxembourg?
Adding VAT in Luxembourg
Following formula is used to calculate vat:
Gross = Amount / 100 * (100 + VAT Rate)
Step 1:
Standard Vat rate of Luxembourg is 17%.
Step 2:
Divide the Amount by 100 and then multiply by the (100 + VAT rate); the result will be the gross amount, including the German VAT.
Step 3:
Now, the total vat rate can be calculated from gross amount as follow
Total VAT = Gross - Price
Example of VAT Addition
Let suppose you buy a SmartPhone on €1000 and the Luxembourg standard vat rate is 17%, then the total cost including the vat would be:
Amount = €1000
VAT Rate = 17%
Gross Amount = Amount / 100 * (100 + VAT rate)
Gross Amount = 1000/100 * (100 + 17)
Gross Amount = €1170
Now,
Total VAT = Gross Amount - Amount
Total VAT = €1170 - €1000
Total VAT = €170
Therefore, the total price, including VAT (gross price) for Smartphone is €1170.
Removing VAT in Luxembourg
To find out the price without vat, use the following formula
Net = (Amount / (100 + VAT Rate)) * 100
Step 1:
Luxembourg vat rate is 17%.
Step 2:
Divide the Amount by the (100 + VAT rate) and then multiply by 100; the result will give you a net amount that doesn’t include any VAT.
Step 3:
Calculate the total vat as is follow:
Total VAT = Amount - Net
Example of Vat Removal
Let's consider you sell a headphone for €200 and need to remove VAT from the selling price. Using Luxembourg standard vat rate i.e. 17%, the selling price excluding the VAT would be:
Amount = €200
VAT Rate = 17%
Net Amount = Amount/(100 + VAT Rate)* 100
Net Amount = 200/(100 + 17)* 100
Net Amount = €171
Now,
Total VAT = Amount - Net Amount
Total VAT = €200 - €171
Total VAT = €29
So, the selling price of headphone excluding VAT would be €171.
Also visit; Malta VAT Calculator
Luxembourg VAT Registration
If your company engages in specific foreign business or makes a lot of sales within the EU, you must register for Luxembourg VAT. Within 15 days of opening for business, you must complete forms in either French or German and register.
Who Needs to Register?
- a. Businesses exceeding a certain annual turnover threshold (exact amount subject to change, so check with the authorities)
- b. Businesses not exceeding the threshold but involved in:
- • Intra-Community acquisitions of goods (acquiring goods from another EU country)
- • Providing services in another EU country where the customer pays the VAT
- • Purchasing services from outside the EU where you (the buyer) are liable for VAT
Luxembourg VAT Number
A Luxembourg tax rate number, also known as a Numéro d'identification à la taxe sur la valeur ajoutée (No. TVA), is a unique identifier for businesses registered for VAT in Luxembourg.
It follows a specific format - LU followed by eight digits (e.g., LU12345678).
VAT Refund Luxembourg
To get a VAT refund in Luxembourg, if you're not based there but you've paid VAT on eligible expenses, you need to follow some steps. You'll have to fill out a VAT refund form and provide documents to show your expenses.
The rules might change based on where you're from and what you spent money on, so it's best to talk to experts or check the official guidelines for help.
Conclusion
VAT Calculator Luxembourg ensures seamless business operations. Having a deep understanding of everything from VAT rates to the registration procedure helps businesses stay compliant with laws and make the most out of their financial plans. Keeping up with Luxembourg VAT laws guarantees economic responsibility and steady expansion in the ever-changing European market.
FAQs
Luxembourg has a standard VAT rate of 17%. This applies to most goods and services unless they are exempt from VAT.
14% is one of the reduced VAT rates in Luxembourg. It applies to certain types of goods and services, such as selected wines, solid fossil fuels, mineral oils, laundry and cleaning products, and printed advertising materials.
Manually: Multiply net price by VAT rate (17% standard, 3%, 8%, or 14% for reduced). Add VAT to net price for gross price.
Online: Use our VAT calculator Luxembourg