Court of Justice of the European Union Rules Directors’ Fees Not Subject to VAT

• The Court of Justice of the European Union (CJEU) has ruled that directors’ fees should not be subject to VAT.
• This decision overturns the previous position of the Luxembourg VAT authorities.
• The case started when a member of the board of directors received a VAT tax assessment for their director activities.
• The CJEU determined that directors’ activities constitute an economic activity and that the fees can be considered as remuneration for services provided.
• This decision may have implications for VAT treatment of directors’ fees in other EU countries.

Source: nortonrosefulbright.com

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.