With its decision of 27.11.2019 (V R 23/19), the Federal Fiscal Court ruled that the activity of a supervisory board member, who receives fixed remuneration without variable remuneration components, is not a taxable person for VAT purposes. In the Federal Fiscal Court’s view, the supervisory board member did not bear any economic risk associated with his activity and therefore, did not provide any services subject to VAT. The judgment should be transferable to limited liability companies, foundations, advisory boards and comparable supervisory bodies, and possibly also to management boards. The Federal Fiscal Court left open other case constellations, other than fixed remuneration. The Federal Fiscal Court also ruled that a self-billing invoice showing VAT only constitutes a tax liability in accordance to sec 14c para. 2 of the German VAT Act, if the recipient of the self-billing invoice is a taxable person.
Source: kmlz.de
