Director fees are not subject to VAT
Following the recent C-288/22 judgment by the Court of Justice of
the European Union on December 21, 2023, the Luxembourg VAT
authorities have swiftly responded by issuing Circular 781-1 which
announces the suspension of Circular 781 from September 30, 2016,
until the Luxembourg District Court's final decision.
As per their official statement on the website, the Luxembourg VAT
authorities are committed to adjusting VAT for board members once
the upcoming national Court decision is released, all while adhering
to the statute of limitations. After this national court decision, a
comprehensive guideline should be provided to assist companies in
correctly adjusting their deduction rights for board member
invoices. Non-compliance could result in legal penalties.
Unconstitutionality of the Luxembourg minimum Net Wealth Tax
In response to the Luxembourg Constitutional Court Decision dated
10/11/2023 (Arrêt no. 00185), the minimum net wealth tax (“NWT”) of
EUR 4,815 is considered as discriminatory for financial companies.
Please find the details below in our trilingual Newsletter.