Import VAT and Duty in Luxembourg
VAT Rates in Luxembourg
The standard VAT rate in Luxembourg is 17% (TVA (taxe sur la valeur ajoutée)). Reduced rates of 14%, 8%, 7%, 6% and 3%.
Import VAT and customs duty in Luxembourg are administered by Administration des douanes et accises (ADA), the Luxembourg Customs and Excise Administration.
The rate applying on import is the rate that applies to a supply of the same or similar goods on the Luxembourg domestic market, which is why correct commodity classification matters at the classification stage and not only at invoicing.
The Taxable Amount in Luxembourg
Import VAT is calculated on the Customs value on a CIF basis, plus customs duty and other charges payable at importation. Freight and insurance to the point of entry into the EU are included in the customs value, so a shipment budgeted on goods value alone will understate the VAT payable.
Customs Duty in Luxembourg
EU Common Customs Tariff applied through TARIC; the rate is set by the commodity code and origin. Duty is set by the commodity code and origin at the date the declaration is accepted — there is no single national rate that applies across a consignment.
Low-Value Consignments in Luxembourg
The EUR 22 import VAT exemption was abolished EU-wide on 1 July 2021. There is no value below which a commercial import escapes VAT. The EUR 150 threshold relieves customs duty only. From 1 July 2026 a temporary flat duty of EUR 3 per item category applies to consignments at or below EUR 150, running until 1 July 2028.
Postponed Accounting in Luxembourg
VAT-registered Luxembourg importers may account for import VAT through the VAT return rather than paying at the frontier. It is a cash-flow mechanism, not an exemption, and it does not apply to customs duty.
Planning Duty and VAT for Luxembourg
Luxembourg-bound containers typically discharge at Antwerp-Bruges, Rotterdam, Hamburg or Zeebrugge, then move inland by road or rail. Antwerp-Bruges and Rotterdam offer the densest connections into the Belgian, Dutch and German hinterland that surrounds Luxembourg, while Zeebrugge and Hamburg are alternatives depending on the service. The right gateway is service-specific rather than universal, and the inland leg is where most door-to-door schedules are won or lost.
That routing, and the country-specific points below, are what turn a generic EU calculation into a Luxembourg one. They belong in the landed-cost model from the outset rather than being discovered at clearance:
- Luxembourg applies the lowest standard VAT in the EU at 17%
- Luxembourg is landlocked: sea freight always involves a gateway port plus an inland leg
- ISPM 15 treatment and marking for all wood packaging
Frequently Asked Questions
The standard rate is 17% (TVA (taxe sur la valeur ajoutée)). Reduced rates of 14%, 8%, 7%, 6% and 3%.
The taxable amount is the Customs value on a CIF basis, plus customs duty and other charges payable at importation. Freight and insurance to the point of entry into the EU form part of the customs value, so under-declaring freight understates the VAT.
No. The EUR 22 import VAT exemption was abolished EU-wide on 1 July 2021. The EUR 150 threshold that remains relieves customs duty only — it has never been a VAT threshold.
From 1 July 2026 a temporary flat duty of EUR 3 applies per declared item category on consignments valued at EUR 150 or less. It is charged on the declarant, not the consumer, and runs until 1 July 2028.
No. Postponed VAT accounting changes when and how import VAT is accounted for, not whether it is due. The VAT remains payable; it is declared through the VAT return rather than paid at the frontier.