Changes in the VAT treatment of committee activities: EU Court of Justice ruling and implications

• The treatment of committee activities for VAT purposes is changing.
• According to German law, members of supervisory boards (both employer representatives and employee representatives) were considered self-employed.
• However, the European Court of Justice (ECJ) ruled that supervisory board members are not engaged in entrepreneurial activities if they receive a fixed remuneration unrelated to their activities.
• The tax authorities implemented the ECJ’s rulings accordingly.
• The ECJ has now had the opportunity to comment on the VAT treatment of committee activities again.
• The ECJ ruled that a member of the board of directors of a Luxembourg company performs an economic activity if they provide a service to the company for remuneration, and this activity has a sustainable character and is remunerated in a predictable manner.
• The activity as a member of the board of directors of a Luxembourg company is not considered self-employed according to the ECJ’s interpretation.

Source: datenbank.nwb.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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