Luxembourg: VAT and director's fees — end of the story in Luxembourg?

On 22 November 2024, the Luxembourg District Court (LDC) issued its decision on a pending case on director's fees. The LDC's decision does not deviate from the judgment of the Court of Justice of the European Union (CJEU) delivered on 21 December 2023: Director's fees fall outside the scope of value-added tax (VAT) as long as certain criteria are met. The LDC has not made any additional clarifications.The Luxembourg VAT authorities (LVA) did not file an appeal before the court of appeal. Instead, the LVA issued several circulars to provide guidance, among other things, on the scope, the refund procedure and the reporting obligations.

Find out more here: https://insightplus.bakermckenzie.com/bm/tax/luxembourg-vat-and-directors-fees-end-of-the-story-in-luxembourg

Authors:
Amar Hamouche (Tax Principal)
Antonio Merino (Tax Senior Associate, VAT)