Setting up an online shop or SaaS company in Luxembourg
Published on 10 October 2026 · Updated on 10 October 2026
In short
To start an e-commerce business in Luxembourg, you need a company or sole trader status, a business permit (no diploma required) and a VAT number. Above EUR 10,000 excl. VAT a year in distance sales to consumers in other member states, the customer's country VAT applies, and the OSS one-stop shop lets you declare it from Luxembourg.
Key figures
- Standard VAT rate in Luxembourg
- 17%
- EU distance-selling threshold
- EUR 10,000 excl. VAT a year, all member states combined
- Chancery fee for the permit
- EUR 50
- Diploma required for online selling
- None
Where VAT is due, by type of customer
| Sale | Customer | General rule |
|---|---|---|
| Goods or SaaS | Consumer in Luxembourg | Luxembourg VAT |
| Goods shipped within the EU | Consumer in another member state | Luxembourg VAT below the EUR 10,000 threshold, customer's country VAT above it or by option |
| SaaS and electronic services | Consumer in another member state | Same common threshold; above it, customer's country VAT, which can be declared through the OSS |
| Goods or SaaS | Business in another member state | In principle taxable in the customer's country, through the reverse charge |
General rules only. Special cases (marketplaces, imports, excise goods) are for your licensed accountant.
Launching the shop or SaaS business
- 1
Choose the structure
SARL-S or SARL to limit liability; sole trader to test a small activity.
Business Registration - 2
Fixed establishment
Even for an online activity, the permit requires an establishment in Luxembourg, not just a server or an address.
Landlord - 3
Business permit
Trade, online selling and digital services: good repute and an establishment are enough.
Ministry of the Economy - 4
Incorporation and registers
Articles, capital, RCS, UBO register within one month.
Lawyer, bank, LBR - 5
VAT and OSS
VAT registration, then OSS registration if you sell to consumers in other member states above the threshold.
AED
Activities outside the standard scope
Some online sales need more than a business permit: food products, alcohol, medicines, high-value goods, payment services or crypto-assets, the latter subject to CSSF authorisation. We check this at the diagnostic stage.
Next step
Launch your online business
Structure, permit and VAT registration coordinated from day one.
Frequently asked questions
Does an e-commerce website need a business permit?
Yes. In Luxembourg, online selling falls under the trade business permit issued by the Ministry of the Economy. No diploma is required, but the manager must be of good repute and the company must have a fixed establishment in Luxembourg, even if the activity takes place only online.
What is the OSS one-stop shop?
The One-Stop Shop lets a company established in Luxembourg declare and pay, in a single quarterly return, the VAT due in other member states on its distance sales and electronic services to consumers. It avoids registering for VAT in each country.
Is the EUR 10,000 threshold applied country by country?
No. It is assessed globally, on the total of distance sales of goods and electronic services supplied to consumers in the other member states. Once the EUR 10,000 excl. VAT threshold is exceeded, the VAT of each customer's country applies, and it can be declared through the OSS.
Must a SaaS sold to businesses charge Luxembourg VAT?
For a business customer established in another member state, the service is in principle taxable in the customer's country, where the customer accounts for the VAT under the reverse charge. For a Luxembourg customer, Luxembourg VAT applies. Special cases are checked with your licensed accountant.
Do I need a warehouse in Luxembourg?
No, a warehouse is not required. The permit does, however, require a fixed establishment from which the activity is managed. Stock can be entrusted to a logistics provider, in Luxembourg or elsewhere, with VAT consequences to review with your licensed accountant.