The CJEU judgment of December 21, 2023, ref. no. C-288/22, in the case of Administration de l’Enregistrement, des Domaines and de la TVA, addressed the issue of whether a member of the management board of several joint-stock companies under Luxembourg law should be considered a VAT payer. The CJEU found that a management board member will be considered a VAT payer if they provide paid services to the company on a permanent basis and receive predictable remuneration. However, the member is not considered to conduct business independently and does not bear economic risk, so their remuneration is not subject to VAT. This judgment emphasizes the need for a comprehensive assessment of a management board member’s activities in terms of conducting business in their own name, on their own account, under their own responsibility, and considering whether they bear economic risks.
Source MDDP
See also
- ECJ Case C-288/22 (Administration de l’Enregistrement, des Domaines and de la TVA) – Judgment – Member Board of Directors is taxable person upon consideration & permanent activity
- Roadtrip through ECJ Cases – Taxable person (Art. 9)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
