Super reduced VAT rate of 3% applicable to eBooks

Luxembourg has continued its approach to the adoption of extremely favourable measures towards providers of electronic goods and services
The current super reduced VAT rate of 3% in Luxembourg for hard-copy books has now been applied to eBooks.
This measure means that Luxembourg has once more strengthened its position as the most attractive location in Europe for activities in relation to the supply of electronic goods and services.
This coupled with the already favourable Intellectual Property (IP) regime, with no wealth tax and effective taxation of 5,8% on royalties, including capital gains on the eventual sale of the IP, as well as;
Favourable VAT rates on:

  • electronic services (15% if provided from Luxembourg to any European customer)
  • radio and TV (3%)

Coficom Trust S.à r.l.
50 Esplanade
L-9227 Diekirch