- The case involves a lawyer and board member of several Luxembourg public limited companies, TP, who believed that his remuneration as a director was not subject to VAT as he was not carrying out his activity independently.
- However, the Luxembourg VAT authorities disagreed and argued that the directors were acting independently and thus subject to VAT.
- The Advocate General Kokott examined the case and found it doubtful that TP could be viewed as carrying out an independent economic activity as he did not bear an economic risk and lacked his own economic initiative.
- If the CJEU aligns with AG Kokott’s view, director services will no longer be subject to VAT in Luxembourg, and companies may consider regularisations for previous years where non-deductible VAT has been incurred with respect to director services.
Source Arendt
See also
- C-288/22 (Administration de l’Enregistrement, des Domaines and de la TVA) – AG Opinion – Member of the Board of Directors of a Public Limited Company is not a Taxable Person
- Roadtrip through ECJ Cases – Focus on ”Taxable person” (Art. 9)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
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