Euro (abbreviated €) notes come in denominations of 5, 10, 20, 50, 100, 200 and 500, although denominations above 50 are rarely seen in common use. Coins are issued in denominations of 1, 2, 5, 10, 20, and 50 cents; you will rarely be required to use the 1 or 2 cents pieces.
As Luxembourg continues to prosper, the cost of living increases annually, but hotel and restaurant prices tend to rise no more than a few percent from year to year. Because of Luxembourg's low VAT (Value Added Tax), perfume, gasoline, cigarettes, and liquor continue to be notably cheaper here than in neighboring countries; you'll find combination gas station/liquor stores clustered at every border crossing. High-octane, unleaded gas costs about €1.30 a liter; in Belgium, you'll pay 20 or 30 cents more.
Cup of coffee, €1.50; glass of beer, €2; movie ticket, €9; taxi ride, 4¾ km (3 mi), €25 (10% higher nights, 25% higher Sunday).
VAT is 15%, except for hotels and restaurants, where it is 3%. Purchases of goods for export (to non-EU countries only) may qualify for a refund; ask the shop to fill out a refund form. You must have the form stamped by customs officers on leaving the European Union. A minimum purchase of €75.00 is required before you're eligible for a refund.