TP v Administration de l’Enregistrement, des Domaines et de la TVA

In TP v Administration de l’Enregistrement des Domaines et de la TVA (Case C-288/22) (13 July 2023) Advocate General (AG) Kokott provided the opinion that whether a company director bears economic risk is a decisive factor in determining whether the director is a taxable person in relation to that appointment.   

The case concerns an individual (TP) who in addition to being in business as a lawyer is a member of the board of directors of several public limited companies incorporated under Luxembourg law. Luxembourg is one of the EU member states that regards the remuneration of a company director as potentially being within the scope of VAT.  

Article 9 of the EU VAT Directive explains that a taxable person is a person who independently carries out any economic activity. Article 10 explains that the condition in article 9 that the economic activity be conducted independently excludes employed and...