- 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.
Latest Posts in "Luxembourg"
- VAT and Transfer Pricing: Scrutiny of Intragroup Services in the Banking Sector Intensifies
- Luxembourg Issues New Circular Revising VAT Rules for Company Cars and Repealing Previous Guidance
- Luxembourg Issues New VAT Rules for Company Cars, Eliminates Professional vs. Private Use Distinction
- New VAT Circular Ends Professional/Private Use Split for Company Cars, Clarifies QM Case Law Application
- Circular No. 807-1 – Provision of Company Cars to Employees and VAT Implications
