The story goes back to the Circular n°781 issued by the Luxembourg VAT authorities on September 30, 2016. At that time, the VAT authorities confirmed that directors were supplying a service against a consideration and therefore performed an economic activity that fell into the scope of VAT. As taxable persons, Directors established in Luxembourg, whether individuals or working as companies, became liable to register for and charge VAT on their services as from January 1, 2017. The publication of this Circular brought some light on a topic that remained a large grey area for practitioners. For a long time, Directors fees were not subject to VAT under the interpretation that: The very same arguments are now being put forward again in the case at hand. TP, a board member of a number of public limited companies in Luxembourg, was ex-officio subjected to VAT on the percentage fee he received by the VAT authorities.