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VAT on Directors’ Fees in Luxembourg: A Shift in the Legal Landscape

F. Wersand et al.

International VAT Monitor2025https://doi.org/10.59403/33artyqarticle
ABDC B
Weight
0.50

Abstract

In this article, the authors outline recent changes to the VAT treatment of directors’ fees in Luxembourg, following recent ECJ judgments and the Luxembourg District Court. These rulings clarified that directors are not considered taxable persons for VAT purposes if they do not act independently. The authors also highlight key legal developments and the implications for directors and companies. In addition, the authors discuss the potential impacts if directors provide a broader scope of assistance than the sole provision of directorship services as members of the board of directors.

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https://doi.org/https://doi.org/10.59403/33artyq

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@article{f.2025,
  title        = {{VAT on Directors’ Fees in Luxembourg: A Shift in the Legal Landscape}},
  author       = {F. Wersand et al.},
  journal      = {International VAT Monitor},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.59403/33artyq},
}

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VAT on Directors’ Fees in Luxembourg: A Shift in the Legal Landscape

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.