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The current rates are:

    Luxembourg standard VAT rate: 15%. Luxembourg VAT will increase to 17% 2015.
    Luxembourg reduced VAT rate: 3% (Foodstuffs, pharmaceuticals, drugs, passenger transport, newspapers, admission to cultural, sporting and entertainment events, hotels, restaurants, ebooks, download music and films).
    Exempt from Luxembourg VAT: insurance, financial services, real estate, postal,  education, health.
Luxembourg VAT compliance changes have been proposed, including:

    New measures to improve the VAT regime in tax free zones. This includes the elimination of potential double taxation on goods in VAT suspension released into a free zone.
    The supply of art and antiques is to be reclassified from the standard VAT rate of 15% to the reduced VAT rate of 6%.
    Auctioneers may apply for the use of the profit margin scheme, rather than conventional input/output VAT in relation to sales of art, antiques and other used goods

If approved by Parliament, the above measures will be implemented from 1 January 2015.

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