A €10,000 project: €11,700 advanced, €3,000 net.
A Luxembourg SME commissions a €10,000 site and marketing package. Here's exactly what left their account upfront, what the State paid back, and how the VAT came back.
A small Luxembourg business came to Graffiti for a new website, SEO and a first advertising push, a project we quoted at €10,000 excluding VAT. Because Graffiti is an approved SME Packages provider, it qualified for the State's digital grant.
The application was prepared and submitted via MyGuichet.lu before any quote was signed. Acknowledgement came within two weeks and the funding was approved in about six. Only then did the client sign, and the build began.
Here's the part that trips people up: the client advanced the entire invoice. Nothing was deducted upfront, because the grant is a reimbursement, not a discount. They paid €10,000 plus €1,700 of VAT, so €11,700 left their account before a single euro came back.
After delivery, the file was closed and the State reimbursed 70% of the cost excluding VAT: €7,000. The VAT is never covered by the grant, so the client recovered the €1,700 separately, through their normal VAT return, exactly like any other business purchase. Once both had come back, the real, final cost of the project was their €3,000 share.
The same logic scales: a €25,000 project means €29,250 advanced, VAT included, then the maximum €17,500 grant comes back and the €4,250 of VAT is recovered, leaving a €7,500 net share. Plan the cash flow for the full invoice; the State pays most of it back afterwards.
