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Analysis by ATOZ Tax Advisors
On December 21 2023, the Court of Justice of the European Union (CJEU) issued its decision on the VAT status of independent directors in the “TP” case (C-288/22). The long-awaited decision constitutes a revolution in the Luxembourg VAT world, as the Court concluded that directors’ fees do not fall within the scope of VAT as long as directors are not acting independently. Consequently, and in such situations, director fees are therefore no longer subject to VAT. The decision is in stark contrast with the position of the Luxembourg VAT authorities as reflected in a 2016 Circular letter.
Thibaut Boulangé, Silvin Leibengut, Justine Guilluy, and Lionel Van der Noot from ATOZ Tax Advisors provide an overview of the decision as well as the consequences for both businesses and directors.
Read the full article here.
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