Activities of board members outside the scope of VAT even in cases of variable remuneration

The Federal Fiscal Court recently changed its case law on the taxation of supervisory board members in the case of fixed remuneration. Now, the Tax Court of Lower Saxony has handed down a decision on a case involving the chairman of a board of directors of a professional pension fund who received a variable form of remuneration. The tax court held that the Plaintiff’s activities were outside the scope of VAT. The decision shows that, even in the case of variable remuneration, the activities of members of a collegial body may be outside the scope of VAT. The decision is of interest not only to members of boards of directors, but also to all members of collective bodies, such as members of supervisory boards or even management boards.

Sources:

• kmlz.de
• steuerlex.de

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