Luxembourg director’s fees were not subject to VAT.
In TP v Administration de l’enregistrement des domaines et de la TVA (Case C‑288/22) (21 December 2023) the CJEU held that an independent director of a Luxembourg public limited company carries out an economic activity for VAT purposes if they supply services for consideration on an ongoing basis but does not do so independently if they do not act on their own behalf or under their own responsibility and bear no economic risk.
TP was a member of the board of directors of several Luxembourg public limited companies. He received fees for his services based on a percentage of company profits.
Article 9 of the European VAT Directive (Directive 2006/112/EC) provides in essence that a person is only a taxable person for VAT purposes where they independently carry out an economic activity.
The Luxembourg tax authority argued that TP’s board activities...
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Luxembourg director’s fees were not subject to VAT.
In TP v Administration de l’enregistrement des domaines et de la TVA (Case C‑288/22) (21 December 2023) the CJEU held that an independent director of a Luxembourg public limited company carries out an economic activity for VAT purposes if they supply services for consideration on an ongoing basis but does not do so independently if they do not act on their own behalf or under their own responsibility and bear no economic risk.
TP was a member of the board of directors of several Luxembourg public limited companies. He received fees for his services based on a percentage of company profits.
Article 9 of the European VAT Directive (Directive 2006/112/EC) provides in essence that a person is only a taxable person for VAT purposes where they independently carry out an economic activity.
The Luxembourg tax authority argued that TP’s board activities...
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