- Recent CJEU decision for Luxembourg settled dispute on whether director fees should be subject to VAT
- Advocate General opined that directors do not carry out independent economic activities
- Director fees in the UK are subject to VAT if one company supplies a director to another
- Recharges of director costs between companies may or may not be subject to VAT
- UK businesses should review whether VAT is required on payments to directors
- UK is no longer subject to CJEU jurisdiction, so CJEU cases are not binding on HMRC or UK courts
Source: saffery.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.
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