The Luxembourg 2019 draft budget has recently been submitted to parliament.
Once it passes through the legislative process, the adopted law is expected to come into force as of 1st May 2019 and includes the following anticipated changes to Luxembourg VAT rates:
- As of 1st January 2019, extending the super-reduced 3% rate of VAT to:
- Feminine hygiene products such as tampons and sanitary towels; and
- Electronic books, online newspapers and other electronic publications. This measure aligns their VAT treatment with that of printed publications.
The changes will not apply to specific publications i.e. those wholly or predominantly devoted to advertising, or to publications wholly or predominantly containing video content.
- As of 1st May 2019, extending the reduced 8% VAT rate to plant protection products authorised for organic agriculture under European law.
At present, these supplies are subject to VAT at the standard 17% rate.
If you are affected by this development and should like to discuss it further, please do get in touch with us.