On 31 January 2025, the Luxembourg tax authorities issued Circular L.I.R. n° 115/21, which replaces the previous circular on meal vouchers dated 3 December 1993. The new circular aims to provide clarifications on the updated regime introduced by the Grand Ducal regulation of 25 September 2023, applicable from the 2024 tax year, regarding digitisation of meal vouchers and clarification of their usage, without introducing any substantive changes.
In particular, the new circular is a reminder that the transitional period allowing the grant and issuance of paper vouchers ended in December 2024. As of January 2025, all meal vouchers must be issued in digital form. The vouchers must be granted for the purchase of meals or food products from an affiliate established in Luxembourg, and they are valid for 12 months.
The circular also reiterates that the use of vouchers is no longer limited to working days and that their use is now restricted to a maximum of 5 units per day.
For reference, the applicable tax exemption is now based on an amount ranging between the average meal value (€2.80, as set by the Grand Ducal regulation dated 28 December 1990) and a maximum of €15 (compared to €8 under the previous regulation), effective from 2024 onward. The regulation does not impose a limit on the total value of a meal voucher (nor does the new circular). Therefore, the maximum tax exemption amounts to €12.20 for meal vouchers issued with a value of €15 or more.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
