On 30 September 2016, the Administration for Land Registration and Estates published Circular No. 781 (the Circular) on the VAT treatment of directors' services.
The Circular clarifies that such services constitute an economic activity that is subject to VAT if the services are provided in Luxembourg.
If the services are provided by a foreign company director, the reverse charge mechanism applies.
Employees representing a director in providing such services are not subject to VAT if they are not acting independently.