- VAT and company directors now face new rules due to recent legal changes
- Circular number 781-2 was published on 11 December 2024
- It explains the impact of the CJEU ruling C-288/22 and the Luxembourg national judgment on 22 November 2024
- Both individuals and legal entities serving as directors are impacted by these VAT rules
- VAT liability is determined by two criteria
- The director’s activity must be economic, continuous, and predictably remunerated
- The activity must be conducted independently, indicating the bearing of economic risk
- Directors not meeting these criteria can apply for simplified VAT regularization through MyGuichet.lu in 2025
- These legal interpretations could significantly alter VAT obligations for both individuals and companies acting as directors
Source: valuepartners.lu
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.
