Luxembourg – VAT of 17% due on activity performed by directors as from 1 of January 2017

flag-of-luxembourgThe Circular 781 was published by the Tax Authorities week ago. The Circular confirms that directors’ services will be taxable in Luxembourg in case when:

The director is established in Luxembourg and supplies services to companies established in Luxembourg and / or to non-VAT taxable companies established outside Luxembourg;

The director is established abroad and supplies services to VAT taxable companies established in Luxembourg, regardless of the VAT obligations of the director in his country of establishment, in which case VAT has to be self assessed in Luxembourg by the recipients of the services under the reverse charge mechanism.

A number of questions remains open.

Please contact Marie-Isabelle Richardin at +352 49 48 48 3009
or by mail, for further details.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s