It must be noted that following Circular No. 781 of 30 September 2016, the Luxembourg VAT authorities were of the view that the director’s fees received by directors must be regarded as remuneration paid in consideration for a service. As such, directors are considered as carrying out an economic activity that falls within the scope of VAT. In fact, the CJEU ruling (C-288/22) is highly expected as it could reverse the current Luxembourg VAT practice.
Source: elvingerhoss.lu
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