Netherlands: VAT liability of boards of directors, supervisory officers

A new decree regarding VAT liability of members of supervisory boards and boards of directors.

New decree regarding VAT liability of members of supervisory boards, boards of directors

A new decree regarding the value added tax (VAT) liability of members of supervisory boards, boards of directors, and other supervisory officers was published 2 August 2021.

The decree clarifies and expands on an earlier 2021 decree that includes guidance for the period 13 June 2019 through 7 May 2021. Read TaxNewsFlash

Supervisory officers who, in the context of their position during the period up through 7 May 2021 charged VAT to the organization for which they were a supervisory officer, do not have to correct this, regardless of whether the organization is/was entitled to recover input VAT. These supervisory officers and comparable persons, however, may elect to correct the Dutch VAT charged.

The August 2021 decree explicitly approves that the Dutch input VAT recovered by supervisory officers may remain available—an advantageous position for supervisory officers. From a Dutch VAT perspective, any correction of the past will only have administrative consequences for supervisory officers. The August 2021 decree also provides that supervisory officers do not have to adjust (correct) the Dutch VAT originally recovered.

Read an August 2021 report prepared by the KPMG member firm in the Netherlands


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