claim VAT back on hotels in Luxembourg

VAT on hotel accommodation in Luxembourg falls under accommodation

VAT paid in Luxembourg for hotel accommodation falls under the cost category "accommodation", one of the ten EU cost categories that Directive 2008/9/EC distinguishes for VAT refund to foreign entrepreneurs. A Dutch entrepreneur who stays overnight in Luxembourg for business purposes can in principle include that VAT in a refund request via the Tax and Customs Administration portal.

Whether and to what extent that VAT is actually granted is up to Luxembourg as the refund country. Not every EU country treats every cost category the same: some countries completely exclude certain expenses from refund, others allow them only partially or impose additional requirements on the invoice. For accommodation specifically, most countries recognise this cost category, but the precise conditions — for example whether breakfast or other items linked to the stay count — differ per country and are listed in the Requirements list that the Tax and Customs Administration maintains per refund country. The applicable VAT rate that Luxembourg applies to accommodation can be found in the Taxes in Europe Database of the European Commission.

What the Requirements list and Directive 2008/9 say about this

Directive 2008/9/EC regulates in general terms the right to VAT refund for non-established entrepreneurs within the EU and mentions accommodation as one of the cost categories for which this right can apply. However, the directive allows member states to set their own limitations per cost category on what qualifies for refund. Which limitations Luxembourg specifically applies to accommodation is described in the Requirements for VAT refund request from other EU countries that the Tax and Customs Administration publishes per country; that overview indicates which cost categories are accepted by Luxembourg and under what conditions.