Clifford Chance
VAT and directors' fees: final guidelines issued by the Luxembourg VAT Authorities
22 January 2025
On 11 December 2024, the Luxembourg VAT authorities (Administration de l'Enregistrement, des Domaines et de la TVA) issued the circular n°781-2 (the "Circular"), completing circular n°781 of 30 September 2016 and providing additional criteria for determining VAT liability as a company's director.
The Circular provides also practical information on the recovery procedure of the VAT unduly paid by a director of a Luxembourg company on his/her/its remuneration, further to the decision of the Luxembourg District Court (Tribunal d'arrondissement) of 22 November 2024, implementing the ruling of the Court of Justice of the European Union ("CJEU") of 23 December 2023.
