Luxembourg VAT legislation largely follows Directive 2006/112/EC ('the Principal VAT Directive') and applies exemption to most of the same categories of goods and services (see the list in Appendix 29B).
Businesses that make only exempt supplies under article 44 of the Luxembourg VAT Law – as opposed to article 43 – cannot recover input VAT unless specifically allowed under article 49(2) of the Luxembourg VAT Law (financial and insurance services provided to non-EU customers). Businesses that make both taxable and exempt supplies can partly recover input VAT, under the partial exemption
Web page updated on 17 Mar 2025 15:00
