The Luxembourg VAT authorities issued Circular 781-2 clarifying the broader implications of the court decision.
The Luxembourg VAT authorities on December 11, 2024, issued Circular 781-2 clarifying the broader implications of the District Court’s November 22, 2024, holding that value added tax (VAT) did not apply to directors’ fees received by a member of the board of directors of certain public limited companies. Read TaxNewsFlash
Circular 781-2 addresses the practical consequences of the District Court’s decision, as well as the decision of the Court of Justice of the European Union (CJEU) that the District Court followed and confirms that the tax authorities do not intend to limit the consequences of these decisions only to board members of public limited companies.
Read a December 2024 report prepared by the KPMG member firm in Luxembourg