Luxembourg VAT on Directors’ Fees: Impact of CJEU C-288/22 Ruling and District Court Decision

• The CJEU ruled that directors’ fees in Luxembourg may not be subject to VAT if the director does not act independently or bear economic risk.
• The Luxembourg District Court confirmed that directors’ fees are generally outside VAT scope unless the director assumes personal responsibility and economic risk.
• Luxembourg VAT authorities introduced a regularization process for refunds of overpaid VAT and case-by-case assessments for VAT liability.
• The CJEU decision clarified the VAT treatment of directors’ fees, challenging the previous stance of Luxembourg VAT authorities.

Source: vatabout.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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