- Recent EU and Luxembourg court rulings impact Luxembourg company directors regarding VAT
- Directors of Luxembourg public limited companies are not considered independent in their duties
- Their services are not subject to VAT as per the latest judgments
- Luxembourg VAT authorities updated guidelines in Circular 781-2, acknowledging directors’ services as economic activities
- Directors do not bear economic risk, which remains with the company, affecting their VAT status
- Risk and responsibility are crucial in determining the independence of economic activities
- Directors should check and update their VAT status based on new interpretations
- An online VAT regularisation process will be available in the first half of 2025
- Directors can correct VAT filings back to 2018 if submitted by 1 July 2025
- They should inform clients about VAT adjustments and refund any overcharged VAT
- Directors need to review their expense claims due to potential increased scrutiny
Source: dlapiper.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
