A €10,000 project: €4,700 upfront, €3,000 net.
A Luxembourg SME commissions a €10,000 site and marketing package. Here's exactly what left their account, what the State covered, 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.
We prepared the file and submitted it before any quote was signed. The Ministry acknowledged it within two weeks and approved the funding in about six. Only then did the client sign, and we began building.
The grant covered 70% of the €10,000 — that's €7,000 — leaving the client a share of €3,000. On top of that share they paid VAT on the full project, so the amount that actually left their account upfront was €4,700 (their €3,000 share plus €1,700 VAT).
Here's the part that trips people up: the VAT is not reimbursed by the grant. The client recovers it through their normal VAT return, exactly like any other business purchase. Once that VAT comes back, the real, final cost of a €10,000 project was just their €3,000 share.
The same logic scales: a €25,000 project brings back the maximum €17,500 grant, leaving a €7,500 net share — with the VAT again recovered separately. The client gets the full result today; the State pays most of the invoice.
