January 2025: annual sales threshold for mandatory VAT registration increases from €35,000 to €50,000
Luxembourg has proposed increasing the annual threshold for Value Added Tax registration in January 2025 from €35,000 to €50,000. The Bill 8406 to implement is now in the Chamber of Deputies.
This will come into effect from 1 January 2025. Check EU VAT registration thresholds via VAT Calc’s live tracker.
Luxembourg, like all EU member states, will also introduce in 2025 the new SME Special Scheme VAT threshold of €100,000. Luxembourg traders will be able to sell VAT-exempt across the other 26 member states. This will require a new, quarterly report of sales and obtaining a new EX number for invoicing.
The allowance is only available to resident businesses. The threshold is based on the business’ prior year sales for goods and / or services exclusive of VAT calculation. If a business exceeds this limit during a year, it’s obligation to VAT register starts from the month following the month when the threshold was passed.
The threshold is not available to farmers, letting of immovable property or intra-community supplies of new means of transport.
Luxembourg applies a VAT registration threshold for intra-community supplies of €10,000 per annum. Luxembourg businesses below the threshold may nevertheless apply for a voluntary VAT registration.
Luxembourg last increased the annual threshold for Value Added Tax registration in January 2021 from €30,000 to €35,000.
If you need to complete Luxembourg returns, our VAT Filer can accurately populate any country submission with verified VAT or GST data from our VAT Calculator or VAT Auditor services.
