Invoicing and VAT for Freelancers in Luxembourg
Mickaël LOC
Certified Accountant ·
Invoicing and VAT for Freelancers in Luxembourg
Invoicing for freelancers in Luxembourg is subject to strict rules regarding mandatory mentions and VAT. Below the €35,000 annual turnover threshold, the VAT franchise regime applies. Beyond that, VAT registration and invoicing with VAT become mandatory. Understanding these rules is essential to avoid tax penalties.
Mandatory information on an invoice
- Full name, address and VAT number of the freelancer (or "article 60 VAT" mention if under franchise)
- Full name, address and VAT number of the client (mandatory for intra-EU B2B)
- Unique sequential invoice number and issue date
- Precise description of the service or good delivered
- Unit price excluding VAT, quantity, total amount excluding VAT, VAT rate and amount, total amount including VAT
- Date of service or period covered
- Payment terms and bank details (IBAN)
VAT franchise threshold: €35,000
A freelancer whose annual turnover does not exceed €35,000 excluding VAT may opt for the franchise regime: no VAT charged, no VAT deductible, no VAT returns. The invoice must state "VAT not applicable, article 60 of the VAT law". As soon as the threshold is exceeded (even during the year), VAT registration must be requested immediately and VAT charged from the first invoice following the excess.
Reverse charge and intra-EU B2B services
For B2B service provision with clients in other EU countries, the reverse charge mechanism applies: the freelancer invoices excluding VAT with the mention "Reverse charge, art. 44 Directive 2006/112/EC". The client declares and deducts the VAT in their country. The freelancer must hold an intra-EU VAT number and submit recapitulative statements (EC Sales Lists) for these transactions. Reverse-charged invoices do not count towards the €35,000 franchise threshold.
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