The Value Added Tax (VAT) rate in Luxembourg is as follows:
Flight and Hotel Booking Itinerary/Reservation Including 7 Days Insurance
- Standard Rate: 17%
- This is the standard VAT rate applied to most goods and services in Luxembourg.
- Reduced Rates:
- 8%: Applied to certain goods and services, such as restaurant services, certain food products, and some other specific items.
- 3%: This is applied to a very limited number of goods and services, such as certain medical supplies, books, and some forms of public transportation.
- Exemption:
- Certain goods and services are exempt from VAT, including financial services, insurance, and healthcare.
Cheapest Ways to Travel to Luxembourg
Luxembourg has one of the lowest VAT rates in the European Union, making it an attractive destination for businesses and consumers. The VAT is applicable to both domestic and imported goods and services.