Expense rules in Luxembourg.
All AED rules: VAT, travel allowances, €0.30/km mileage rate and VAT recovery in Luxembourg.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals | 8% | 50% deductible | Representation expenses |
| Travel meals | 8% | 100% reclaimable | Per diem cap |
| Accommodation | 3% | 100% reclaimable | Super-reduced rate |
| Fuel | 17% | 100% reclaimable | Business use |
| Train / CFL / flight | Gratuit | N/A | Free public transport |
| Taxi | 8% | 100% reclaimable | Receipt required |
| Client gifts | 17% | 100% reclaimable | Reasonable cap |
| Parking / toll | 17% | 100% reclaimable | Itemized invoice |
National flat
Daily public allowance LU.
Foreign flat
By country.
Retention
Tax records (VAT Code).
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | 0,30 €/km | Unlimited | Public service rate |
| Motorcycle | 0,20 €/km | Unlimited | Reduced rate |
Car rate
Tax-free mileage allowance.
Covers
Fuel + maintenance + insurance.
Logbook
Date, location, km, purpose.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Luxembourg — national | 30 € | — | 30 € |
| Luxembourg-City (overnight) | 30 € | 160 € | 190 € |
| Foreign — Paris | 65 € | 185 € | 250 € |
| Foreign — London | 70 € | 220 € | 290 € |
| Foreign — Brussels | 60 € | 180 € | 240 € |
National flat
National mission meal allowance.
Foreign flat
Table published Guichet.lu.
Senior
Top management uplift.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| European Union (27) | 8th Directive (2008/9/EC) | 30 Sept. N+1 | eCDF — AED |
| France | Reciprocity | 30 Sept. N+1 | Via eCDF |
| United Kingdom | 13th Directive post-Brexit | 31 Dec. N+1 | HMRC VAT65A |
| Switzerland | Reciprocity | 30 June N+1 | FTA Form 1222 |
| USA | No recovery | — | Sales tax not recoverable |
| LU VAT for foreign cos | 8th Dir. eCDF | 30 Sept. N+1 | AED — eCDF Portal |
EU minimum
Annual 8th Directive request.
LU minimum
Min VAT foreign company.
Typical ROI
% expenses recovered multi-country.
Industrialize your Luxembourg expenses with Illizeo.
VAT 17% (lowest EU), AED €0.30/km mileage, Guichet.lu allowances, EU 8th Directive VAT recovery: all the AED rules above are natively integrated into Illizeo.
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