VATupdate

Comments on ECJ C-288/22 (Question) – VAT on Director Fees: end of the story?

The District Court of Luxembourg (“Tribunal d’arrondissement” or “the referring Court”) has recently requested a preliminary ruling from the ECJ on the topic of the VAT status of a natural person who is a member of the board of directors of a public limited company incorporated under Luxembourg law (“société anonyme”) and  the VAT treatment applicable to the remuneration he receives in the form of percentage fees (“tantièmes”).
As the VAT Directive remains silent on the VAT issue of a company management, the various EU Member States (“MS”) have tried to address this challenge based on the general VAT rules laid down in articles 9 and 10 of the VAT Directive. Due to the different interpretations made by the EU MS, there is currently a lack of harmonisation  on the applicable VAT treatment.

Source BDO

See also ECJ Case C-288/22 (Administration de l’Enregistrement, des Domaines and de la TVA) – Questions – Is a Member of the Board of Directors of a Public Limited Company a Taxable Person?


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