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Luxembourg increasing standard, intermediate, and reduced VAT rates

updated: 
November 28, 2023

Luxembourg’s standard VAT rate will return to 17% (up from 16%), the intermediate rate will return to 14% (up from 13%), and the reduced rate back to 8% (up from 7%) on January 1, 2024.

The bottom line: Luxembourg’s 1% VAT cut for 2023 was temporary and implemented in an attempt to combat inflation.

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