ECJ Case C-420/18 – Comments – Possible consequences for the VAT position of supervisory directors and similar officers

On 13 June 2019, the European Court of Justice (“ECJ”) ruled on the IO case (No. C-420/18). This case is about the VAT position of a supervisory director.

The ECJ has ruled that a member of a supervisory board of a Dutch foundation does not perform economic activities independently and therefore does not qualify as a VAT entrepreneur. The Tax and Customs Administration has classified supervisory directors with one or more supervisory directorships as VAT entrepreneurs to date. This judgment therefore deviates from current Dutch practice.

Source: KPMG (Dutch)

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