- The case in question concerns the VAT treatment of fees received by a lawyer who is a member of the board of directors of several companies in Luxembourg.
- The majority of Member States do not consider such fees to be for an independent economic activity, but they are viewed as such in six Member States, including Luxembourg.
- The Luxembourg tax authorities considered the fees to be subject to VAT, but the Advocate General (AG) was of the view that they are not.
- The AG noted that an independent taxable person assumes their own economic risk, which is not the case for an employee. Applying a typological assessment, the AG doubted that the lawyer in this case carries out an independent economic activity as a member of a body of a legal person and suggested that such fees are not subject to VAT.
- However, the final decision is left to the referring court.
Source KPMG
See also
- C-288/22 (Administration de l’Enregistrement, des Domaines and de la TVA) – AG Opinion – Member of the Board of Directors of a Public Limited Company is not a Taxable Person
- Roadtrip through ECJ Cases – Focus on ”Taxable person” (Art. 9)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
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