Skip to main content

Key Terms

  • Value Added Tax (VAT) / TVA (Taxe sur la Valeur Ajoutée): Consumption tax levied on goods and services in Luxembourg
  • Output VAT (TVA collectée): VAT collected on sales, recorded in Account 44581
  • Input VAT (TVA récupérable): VAT paid on purchases, recorded in Account 44551, can be recovered
  • Net VAT: Difference between output VAT and input VAT (payable or refundable)
  • Standard VAT Rate: 17% - applies to most goods and services
  • Intermediate VAT Rate: 14% - applies to wine, alcoholic beverages, certain energy products
  • Reduced VAT Rate: 8% - applies to food products, books, pharmaceuticals, hotel accommodation
  • Super-Reduced VAT Rate: 3% - applies to basic foodstuffs, water, medical equipment, public transport
  • VAT Registration Threshold: €35,000 annual taxable turnover (mandatory registration)
  • SME VAT Scheme: Simplified VAT scheme for businesses with turnover up to €50,000
  • VAT Return (Déclaration TVA): Periodic report showing output VAT, input VAT, and net VAT
  • eCDF: Electronic platform for filing VAT returns in Luxembourg (mandatory)
  • VAT-Exempt: Transactions not subject to VAT (cannot recover input VAT)
  • Zero-Rated: Transactions at 0% VAT (can recover input VAT)
  • Reverse Charge: Mechanism where customer accounts for VAT (common in EU B2B transactions)
  • Intra-EU Supply: Supply of goods/services to EU business (zero-rated with valid VAT number)
  • Intra-EU Acquisition: Purchase from EU business (reverse charge applies)
  • Import VAT: VAT payable on goods imported from non-EU countries
  • Export: Sale to non-EU country (zero-rated with export documentation)
  • Distance Selling: Selling goods to consumers in other EU countries
  • MOSS (Mini One Stop Shop): System for reporting VAT on digital services to EU customers
  • EC Sales List: List of intra-EU B2B supplies (required when threshold exceeded)
  • VAT Invoice: Invoice showing VAT separately with required information
  • VAT Number: Unique identifier for VAT-registered businesses (format: LU + 8 digits)

End of Chapter 27 Key Terms