European Court of Justice Issues Judgment on Luxembourgish VAT Rules for Director Services

The European Court of Justice (ECJ) Dec. 21, 2023, issued a judgment in Case No. C-288/22, on Luxembourgish VAT rules for director services. The taxpayer provided board of director services to several companies and received fees as a percentage of the companies’ profits. The Luxembourgish Tax Authority issued a VAT assessment on the fees. Upon a request for a preliminary ruling, the ECJ held that under EU Directive 2006/112/EC, on the common system of VAT: 1) a member of the board of directors of a public limited company under Luxembourgish law carries out an economic activity when the director supplies ...