by Eline Delerue and Dries Torreele
Natural persons residing in Belgium and sitting on the Board of Directors of a Luxembourg company will have to comply with a number of Belgian VAT formalities from 1 January 2017 onwards.
Following a Luxembourg circular, even independent directors will be liable for VAT in Luxembourg and the services they render will be subject to VAT. The VAT rate in Luxembourg is 17%.
Specifically, Belgian natural persons who take on the role of director in a Luxembourg company must observe the following formalities:
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.