How to invoice a client in Luxembourg

Start with the VAT treatment, not the invoice template

The invoice depends on where the transaction is taxed. A clean layout will not fix the wrong VAT treatment. Before issuing a Luxembourg invoice, identify the flow, the customer status and the place of taxation. See VAT in Luxembourg for an overview of the applicable rules.

When should you charge Luxembourg VAT?

You charge Luxembourg VAT when the operation is taxable in Luxembourg and no exemption or reverse charge applies. This is typically the case for local supplies of goods, local taxable services and certain B2C transactions where Luxembourg is the place of taxation. See our VAT rules in Luxembourg guide for the full picture.

Do not treat 0% as a default VAT rate. In Luxembourg invoicing, the absence of VAT usually comes from a legal mechanism: intra-EU exemption, export exemption, reverse charge or a specific exemption. The invoice must state the reason why no Luxembourg VAT is charged.

Can a foreign company invoice a Luxembourg customer?

Yes, a foreign company can invoice a Luxembourg customer without creating a Luxembourg establishment. The real question is whether the company must register for VAT with the AED, the Administration de l'enregistrement, des domaines et de la TVA.

An EU-established business may, depending on the transaction, register directly with the AED. A non-EU business should check whether a fiscal representative in Luxembourg or specific local setup is required for its Luxembourg operations. Once registered, the Luxembourg VAT number must follow LU12345678.

Which Luxembourg VAT rate should you apply?

Luxembourg has several VAT rates depending on the goods or services supplied. The standard rate is 17%, but certain categories may fall under the reduced, intermediate or super-reduced rate.

If several rates apply on the same invoice, split the taxable bases and VAT amounts by rate. This avoids reconciliation issues between the invoice, accounting records and VAT return.

Mandatory invoice details in Luxembourg

A Luxembourg VAT invoice must identify the parties, the transaction and the VAT calculation. The mandatory information must be precise enough for the AED and the customer to understand the taxable basis and the VAT treatment.

The invoice number must be sequential, unique and traceable. Avoid duplicate numbers, broken sequences without explanation or numbers generated from the date alone if they do not guarantee uniqueness.

Wording to use when no Luxembourg VAT is charged

The legal wording must match the transaction. A reverse-charge note cannot justify an export, and an export wording cannot justify an intra-EU supply.

Can you invoice in a foreign currency?

Yes, a Luxembourg invoice can be issued in a currency other than the euro. The VAT values needed for the Luxembourg VAT return must still be convertible into EUR.

In practice, keep the invoice currency, the taxable base, the VAT amount where applicable, the EUR conversion and the exchange rate used. The exchange-rate evidence should be archived with the invoice, because foreign-currency differences become visible during VAT return and accounting reconciliations.

What is the issue deadline for B2B invoices?

For B2B transactions, the invoice must be issued by the 15th day of the month following the supply. A service performed or goods supplied on 10 March must therefore be invoiced by 15 April.

This deadline is not cosmetic. Late invoices can shift VAT reporting periods, create deduction issues for the customer and complicate audit trails.

Is e-invoicing mandatory in Luxembourg?

E-invoicing is mandatory in Luxembourg only for public procurement and concession contracts, with exceptions. In that B2G context, economic operators must issue and transmit compliant structured electronic invoices through the authorised channels, typically Peppol or the public PFI/MyGuichet route indicated for the contract.

There is no general B2B e-invoicing mandate for ordinary private-sector invoices in Luxembourg. A standard B2B invoice can still be issued on paper or electronically, subject to the recipient's acceptance and the usual requirements for authenticity, integrity, readability and archiving.

How long should Luxembourg invoices be kept?

Issued and received invoices must be kept for 10 years. Keep the invoice together with the documents that justify the VAT treatment: VIES validation, proof of transport, export customs document, contract, purchase order, delivery note and exchange-rate evidence.

The file should tell the whole VAT story. During an audit, the invoice alone rarely proves that the exemption, reverse charge or export treatment was correctly applied.

Common invoicing mistakes to avoid

Most Luxembourg invoicing errors come from using one ERP template for every flow. Local VAT, intra-EU supplies, exports and reverse-charge services need different VAT logic and different wording. For flows involving goods, remember that Intrastat in Luxembourg and EC Sales List obligations may also apply.

Avoid these mistakes:

• charging 17% on a transaction that should be exempt or reverse charged;
• using no Luxembourg VAT number when local registration is required;
• presenting 0% as if it were the general VAT rate;
• forgetting the reverse-charge wording;
• failing to split taxable bases by VAT rate;
• using a non-sequential or duplicate invoice number;
• issuing B2B invoices after the 15th day of the following month;
• invoicing in foreign currency without retaining the EUR conversion and exchange rate;
• treating B2G e-invoicing as a general B2B obligation;
• missing VIES validation or transport evidence for intra-EU supplies.