Granted, Luxembourg is a member of the European Union (EU) customs and as such the import duties follow the rules established by this Union. Here are the main points regarding import duties:
Customs union rules
The EU acts as a single market without any customs tariffs on cargo travelling within the member states and goods imported from outside the EU are not subject to import duties.
Imports from non-EU countries
EU customs duties are applied to merchandise imported outside the EU. The import duties depend on what type and at what value the goods are, based on the EU Combined Nomenclature (CN) code.
Value-added tax (VAT)
Luxembourg taxes imported freight, including from the EU and from outside the EU. VAT rates are standard at 17% but reduced (8% for some food items. 3% for books and some cultural goods). The total cost, including the price of the item, shipping and insurance is used to calculate VAT.
Exemptions and thresholds
Low-Value Imports: The customs duties for property below €150 are not to be paid, though VAT still applies.
Personal Imports: Goods brought back duty-free by travellers after returning from non-EU countries include things within specific value limits. (€430 for air travellers and €300 for other travellers).
Excise duties
Other goods such as alcohol, tobacco, and petroleum products may be subject to additional excise duties.
Liechtenstein import duties
Import duties in Liechtenstein are roughly equivalent to those of Switzerland. That is because the two countries enjoy a customs union.
Import of goods in Luxembourg
Goods arriving from third countries or territories must be declared to customs. Customs and VAT obligations depend on the customs status of the goods at the time of their arrival in Luxembourg. If the goods were customs cleared for final importation in another member state before their delivery in Luxembourg: import VAT will not be due in Luxembourg. In Luxembourg, an intra-community acquisition of goods must be declared.
If the goods are customs-cleared for final importation in Luxembourg: In the case of the importer, the import VAT must be declared in Luxembourg.
If a taxable economic operator is not registered for Luxembourg VAT or if it does not appoint an approved Luxembourg tax representative, it must declare the import VAT due in Luxembourg.
Import with VAT
The reverse charge mechanism is used by the importer to pay the import VAT due in Luxembourg to its VAT return. In practice, the import VAT is not paid, while customs duties payable to the Customs and Excise Administration are paid by the importer. The import VAT is calculated by the importer on his VAT return and also deducted from this according to his right of deduction. The fact that this method of declaring the import VAT due is a true financial advantage for the importer. Who can deduce the import VAT in its VAT return without having to pre-finance it, is a true financial advantage.
Example of import VAT reverse charge in Luxembourg: A computer is imported from China to Luxembourg to be resold by an economic operator. The goods are declared to Luxembourg customs in October.
Distance sales of imported goods to a ‘non-tax’ person
Low-value goods have been exempted from VAT with effect from 1 July 2021. Since that date, all goods imported into the EU for sale have been subject to VAT of the country of destination of goods, irrespective of the value of the imported goods.
The IOSS (“Import One Stop Shop”) allows the seller of imported goods with a value of less than or equal to EUR 150 to declare and pay the VAT. Due in all Member States by a single VAT administration.
Key points to remember
Swiss Customs Union: It is part of a customs union with Switzerland. This means that when goods are imported into Liechtenstein, the same customs duties and regulations apply as you would for goods imported into Switzerland.
Low Tariffs: Switzerland and Liechtenstein are generally low-tariff countries on imported goods mainly from other European countries.
Value Added Tax (VAT): There may be import duties and also VAT on imported goods. The Swiss current VAT rate is 7.7%. If you want the most precise information on import duties for certain products, it would be advisable to contact customs authorities or a customs broker in Liechtenstein. They will give you details on tariffs, regulations, and those specific requirements for import of your own.
Free Trade Agreements: Switzerland and Liechtenstein have a lot of free trade agreements which can lower or remove import duties on certain goods about a certain country or region.
Customs Procedures: Importation is utmost smooth when customs procedures are understood and complied with. That includes documentation, inspections, and even fees.
If you are skilful in considering these factors and making a visit to relevant authorities, recovering from the import process to Liechtenstein will not be a haphazard and complicated process. The EU TARIC (Tarif Intégré de la Communauté) system or a customs broker will usually provide detailed information on accurate duty rates on such items as a rule.
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