Luxembourg to raise VAT rate

The Prime Minister of Luxembourg has announced their plans to raise VAT, in order to compensate for the upcoming changes in 2015. From then on, the EU Business to Consumer digital services VAT rules will change. (Taxation at the place of the consumer instead of the place of the supplier).

Luxembourg's standard VAT rate will probably increase with 2%, to 17%. The starting date is still unclear, however it is possible the raise will already be effective at (the end of) 2014. We will keep you informed.