The District Court of Luxembourg has requested a preliminary ruling from the Court of Justice of the European Union (CJEU) on the VAT status of a member of the board of directors of a public limited company incorporated under Luxembourg law and the VAT treatment of the remuneration the director receives in the form of “percentage fees.” Under Luxembourg law, company directors are considered taxable persons for VAT purposes and supplies of their services are subject to the 17% Luxembourg VAT if the directors are deemed to be located in the country. As further explained below, the CJEU decision in this case could significantly impact current Luxembourg VAT practice.
Source BDO
