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Comments on ECJ C-288/22: When does a member of the company’s management board conduct VAT-taxable activities?

When does a member of the company’s management board conduct VAT-taxable activities? (opinion of the Advocate General of the CJEU of 13/07/2023, C-288/22).

  • The Advocate General of the CJEU recently issued an opinion on whether a member of a company’s management board should be recognized as a VAT payer.
  • The case involved a Luxembourg lawyer who was a member of several limited liability companies and was deemed by tax authorities to be running a business subject to VAT.
  • The Advocate General found that, as a general rule, a management board member should not be recognized as a VAT payer, but the assessment should be made by comparing their role with that of a typical entrepreneur.
  • Important circumstances to consider include whether the member is responsible for the company’s actions, whether their activity is directed to the company and not third parties, and whether they bear the risk of loss like an ordinary business entity.
  • The issue remains controversial in many EU Member States, but the Ombudsman’s opinion aligns with the criteria typically used by tax authorities in Poland.

Source Deloitte

See also


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