New Guidelines on VAT Treatment of Director’s Fees in Luxembourg: A Comprehensive Overview

• New guidelines on VAT treatment of director’s fees issued by Luxembourg tax authorities
• Director’s fees not subject to VAT if director does not act independently
• Directors or managers who previously charged VAT can request regularisation
• Previous circular required VAT compliance for independent director mandates
• TP Case ruled that director’s remuneration should not be subject to VAT
• CJEU ruled that director is carrying out economic activity for VAT purposes
• Director does not act independently if not acting on own behalf or under own liability
• New Circular endorses CJEU ruling and provides guidelines for VAT treatment of director’s fees

Source: ashurst.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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