VAT and company directors: new rules for individuals and legal entities

Circular n°781-2, published on 11 December 2024, sheds light the implications of the CJEU ruling (C-288/22) and the Luxembourg national judgment of 22 November 2024, regarding VAT obligations for members of boards of directors.

Key takeaways:

◾ Both individuals and legal entities (acting as directors) are affected.
◾ VAT liability depends on two main criteria:
➡ The activity is economic, continuous, and remunerated in a predictable manner.
➡ The activity is conducted independently, which implies bearing the economic risk.

Directors who do not meet these criteria can request a simplified VAT regularisation for the relevant years via MyGuichet.lu in 2025.

A significant change to consider: this jurisprudence could substantially affect your VAT obligations, whether you are an individual or a company acting as a director.

Find the circular here : https://lnkd.in/ekG-Jk5K

For detailed guidance and support, please contact our VAT Team led by Steve Georges