VAT

VAT is a consumption tax placed on a product whenever value is added at each stage of the supply chain.

In Luxembourg, VAT operates within the EU framework, with a standard rate that businesses must charge on sales. Companies can reclaim VAT on eligible purchases, which is critical for managing overall tax burdens. The VAT system in Luxembourg is known for its integration with EU regulations and is supported by digital tools that streamline compliance, reporting, and cross-border trade.