- On December 21, 2023, the CJEU issued a decision on the VAT status of independent directors in Luxembourg.
- The Court concluded that director fees do not fall within the scope of VAT if directors are not acting independently.
- As a result, director fees in such situations are no longer subject to VAT.
- This decision contradicts the position of the Luxembourg VAT authorities as stated in a 2016 Circular letter.
Source: taxand.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"
- 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
- Luxembourg VAT on Directors’ Fees: Impact of CJEU C-288/22 Ruling and District Court Decision
