VAT rates applicable in Luxembourg in 2025
In Luxembourg, Value Added Tax (VAT) is levied at several different rates: a standard rate of 17%, an intermediate rate of 14%, a reduced rate of 8%, and a super-reduced rate of 3%. Over the past several years, these rates have been subject to various legislative adjustments.
1. The different VAT rates in Luxembourg in 2025
1.1. Super-reduced rate: 3%
This rate applies in particular to certain goods and services deemed essential (books, electronic newspapers, certain pharmaceutical products, etc.), as well as to the reception of paid radio and TV broadcasting services (see details below).
1.2. Reduced rate: 8%
This rate covers certain categories of goods and services (specific renovation and repair work on private residences, etc.), based on eligibility lists defined by Luxembourg law.
1.3. Intermediate rate: 14%
This rate applies to a limited number of goods and services, also specified by law, such as certain energy products or certain housing-related services.
1.4. Standard rate: 17%
This rate covers the majority of goods and services in Luxembourg.
Note: Between 2023 and 2024, Luxembourg temporarily reduced some of these rates by one percentage point (an anti-inflation measure). Since 1 January 2024, the rates have reverted to their usual levels mentioned above (17%, 14%, 8%, and 3%).
2. Particularities for TV and radio broadcasting
2.1. Super-reduced rate (3%) for paid radio and TV services
Legislation introduced a super-reduced rate of 3% for broadcasting television or radio programs intended for the general public (broadcasting in “point-to-multipoint” mode).
In practice:
- Paid TV subscriptions (via cable, satellite, IPTV, etc.) benefit from the 3% rate.
- Paid radio subscriptions (if applicable) also benefit from the 3% rate.
This provision aims to encourage access to information and culture through radio and television.
2.2. Exclusions: Content downloads and other services
By contrast, the following services are not subject to the 3% rate:
- Downloading music, movies, games, or other digital content (to computers, smartphones, tablets, etc.).
- Providing on-demand audiovisual services (VOD), where services are provided on a “point-to-point” basis (personalized for each subscriber), generally remains subject to the standard rate (17% in 2025), unless otherwise stipulated.
- Providing cloud storage space by providers such as Google Drive, Microsoft OneDrive, iCloud, or Dropbox is also subject to the standard VAT rate of 17% for Luxembourgish customers.
The intent is to distinguish broad (broadcast) distribution services from purely individualized services.
3. Key takeaways
- Super-reduced rate (3%): Paid “point-to-multipoint” broadcasting of TV and radio programs for the general public.
- Standard rate (17% in 2025): All other goods and services, unless specific provisions apply (including digital downloads, VOD services, etc.).
- Intermediate rate (14%) and reduced rate (8%): Applied to particular categories of goods and services as defined by law.
Through this framework, Luxembourg supports the accessibility of radio and television for a wide audience, while maintaining a stable fiscal environment for other audiovisual or digital products and services. For any specific situation, it is recommended to consult your fiduciary.
_comp.jpg)
