Luxembourg Customs Duty

Key Takeaways

• Luxembourg’s standard VAT rate is 17% - the lowest of any EU member state.
• Luxembourg also applies a 3% super-reduced VAT rate to books, e-books, and certain foodstuffs, well below its already-low standard rate.
• As an EU member state, Luxembourg follows the same EU-wide €150 threshold and IOSS-based duty rules as every other member.
• Orders under €150 from IOSS-registered sellers pay a flat €3 customs duty per item type, since 1 July 2026.
• Orders over €150 pay 17% VAT plus category-based customs duty plus a carrier handling fee, regardless of IOSS status.

How Luxembourgish Import Rules Work

Luxembourg is one of 27 EU member states, so it follows the EU’s shared customs and VAT framework rather than a country-specific system - the only thing that varies by country is the VAT rate itself, applied based on where the goods are delivered, not where the seller is based.

At 17%, Luxembourg’s VAT rate is the lowest standard rate anywhere in the EU, just ahead of Malta’s 18%. Everything else follows the standard EU rules:

• Under €150, IOSS seller: 17% VAT included at checkout, plus a flat €3 customs duty per item type.
• Under €150, non-IOSS seller: 17% VAT collected by the courier, no customs duty.
• Over €150: 17% VAT, customs duty (typically 0-16.5% by product category), and a carrier handling fee, regardless of IOSS status.

For the full EU-wide rules and every member state’s VAT rate, see the EU customs duty guide and full EU import rules explainer.

Luxembourg-Specific Considerations

VAT in Luxembourg is administered by the Administration de l’enregistrement, des domaines et de la TVA (AED) - the “Registration Duties, Estates and VAT Authority” - while physical customs clearance falls under a separate customs and excise administration. Import VAT is due at customs clearance for parcels arriving from outside the EU, the same as everywhere else in the bloc.

Luxembourg is a small country wedged between Belgium, France, and Germany, and cross-border shopping is part of everyday life there in a way that’s unusual for most EU member states. According to RetailDetail EU’s coverage of cross-border retail data (2022 figures), Luxembourg residents directed roughly 80% of their online shopping budget to foreign webshops that year, and cross-border retail turnover for the country topped €1.8 billion. It’s worth noting, though, that most of that cross-border activity is intra-EU shopping from neighboring Belgian, French, and German retailers - that’s not an “import” in the customs sense at all, since goods moving between EU countries aren’t subject to customs duty or the €150 threshold. The rules on this page only apply to purchases from sellers based outside the EU.

Luxembourg also runs a 3% super-reduced VAT rate, well below its 17% standard rate, that applies to books, e-books, and certain foodstuffs - a notably low rate for e-book purchases if you’re ordering digital or printed reading material from outside the EU.

Frequently Asked Questions About Customs Duty in Luxembourg

Why is Luxembourg’s VAT rate the lowest in the EU?

Each EU member state sets its own standard VAT rate within EU minimums, and Luxembourg has consistently kept its rate at the low end - currently 17%, just below Malta’s 18% and well under the EU average of roughly 21-22%.

Does buying from a nearby store in Belgium, France, or Germany count as an import into Luxembourg?

No. Purchases from sellers in other EU countries are intra-EU trade, not imports, so they’re not subject to customs duty or the €150 threshold rules described here - only the seller’s local VAT applies at checkout. The rules on this page cover purchases from sellers based outside the EU.

Do books or e-books get a different VAT rate in Luxembourg?

Yes. Luxembourg applies a 3% super-reduced VAT rate to books, e-books, and certain foodstuffs, well below its 17% standard rate, though the €150 threshold and IOSS duty rules still apply the same way to these purchases.

Which authority handles VAT and customs in Luxembourg?

VAT registration and administration falls under the Administration de l’enregistrement, des domaines et de la TVA (AED), while physical customs clearance is handled by a separate customs and excise administration.

Where can I check product-specific duty rates for an order into Luxembourg?

Use the EU tariff lookup tool for category-level duty rates, which apply the same way regardless of which EU country you’re in.