New VAT rules applicable for Directors fees in Luxembourg
As a reminder, the AEDT had suspended its Circular 781 dated 30th September 2016 a year earlier following the position given by the European Court of Justice (hereafter “ECJ”) in the context of a preliminary ruling requested by the Luxembourg District Court (Case C-288/22 TP vs AEDT). ECJ had challenged the AEDT approach which was considering a Directors' activity as constituting an economic activity within the scope of VAT law (see our Tax Newsletter on the subject dated 8th January 2024).
Almost a year later, on 22nd November 2024, the Luxembourg District Court itself challenged the AEDT approach. In this context, the AEDT published this new Circular taking account of these two rulings and clarifying the VAT treatment to be applied.
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