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By Brice ROUSSEL, Director and Marie-Isabelle RICHARDIN, Partner, PwC Luxembourg
Much awaited by the Luxembourg market, the Court of Justice of the European Union (“CJEU” or the “Court”) released its decision on 21 December 2023 regarding the VAT treatment applicable to directors’ fees (C-288/22, TP v. Administration de l’Enregistrement et des Domaines et de la TVA). The CJEU took a two-step approach to conclude whether the activity of the director in the case at hand was falling within the scope of VAT. First, the Court looked at the existence of an economic activity and secondly, the Court analysed whether this activity was performed independently.
In the first place, the CJEU indicated that an economic activity should be recognised if the...
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