As a reminder, following the law of October 26, 2022, the Luxembourg government had decided to temporarily lower VAT by 1% for a period of one year, in order to combat the economic effects of inflation.

This temporary measure was only applicable for the year 2023.

As no extension of this measure has yet been planned by the Government, VAT rates will revert to their original level on 01/01/2024.

From January 1, 2024, VAT rates will therefore revert to:

  • 8% (instead of 7%) for gas, electricity, heating, firewood, plants, hairdressing, private home cleaning...
  • 14% (instead of 13%) for wines of 13° alcohol or less, cleaning products, printed advertising material, custody and management of securities...
  • 17% (instead of 16%) for everything else!

Please note that the 3% rate remains unchanged.

Once again, we invite you to check or anticipate the updating of your accounting software, and to adapt your invoice templates!

If you have any questions, please do not hesitate to contact us: In Extenso Belux.