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Comments on ECJ C-288/22: Director’s fees: is it the end of a long VAT story?

The Court of Justice of the European Union (CJEU) has issued a decision on the VAT treatment of directors’ fees, concluding that directors performing economic activities but not acting independently would not be considered taxable persons for VAT purposes. The decision is based on the lack of personal risk assumed by the director in their position on the board. This decision may have varying implications depending on the specific circumstances of a director’s mandate. The CJEU’s decision was in response to questions referred by the Luxembourg tribunal, regarding whether a director’s activities constitute an economic activity and whether they are independent within the meaning of the EU VAT Directive.

Source PwC

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