In 2023, Luxembourg re-introduced some VAT rate changes, where the standard, intermediate and reduced rates were reduced by 1%. Kofax supported all the revised VAT rates as part of its e-invoicing solution in Luxembourg.

The VAT rate reductions were implemented as a temporary measure only. As expected, Luxembourg will now revert to the original VAT rates in existence prior to 1 January 2023.

This means that from 1 January 2024, the following VAT rates will once again take effect in Luxembourg:

• Standard rate: 17% (up from 16%)
• Intermediate reduced rate: 14% (up from 13%)
• Reduced rate: 8% (up from 7%)
• Super reduced rate: 3% (no change)

Luxembourg is a compliant territory for Kofax. Both the original and revised VAT rates currently form part Kofax’s e-invoicing solution in Luxembourg, as the rates applicable in 2023 may still be required for the facilitation of credit and debit notes. Suppliers should select the appropriate tax rate as applicable to their circumstances.