VATupdate

Share this post on

Comments on ECJ C-288/22: VAT status of company directors: insights from the “TP” case

  • The Advocate General of the Court of Justice of the European Union, Juliane Kokott, has opined that a natural person acting as a director of a company is not a VAT taxable person because they do not exercise an economic activity in an independent manner.
  • The opinion was given in the case of Mr. “TP,” a Luxembourgish lawyer and non-executive director of several Luxembourg companies, who was assessed by the Luxembourg VAT authorities for not applying VAT on his director fees.
  • The AG noted that a director does not act independently and does not bear an economic risk, and that director fees are set unilaterally by the company.
  • She also ruled that submitting director fees to VAT would violate the legal principle of neutrality.
  • The VAT status of directors varies across EU member states, and a decision from the court is expected at the end of 2023 or early 2024.

Source International Tax Review

See also


  • Join the Linkedin Group on ECJ VAT Cases, click HERE
  • For an overview of ECJ cases per article of the EU VAT Directive, click HERE

Sponsors:

VAT news
VAT news

Advertisements:

  • vatcomsult