MEP Benoit Cassart (Renew) has asked the Council to clarify whether Member States may still exclude company directors from VAT liability under a 1977 Council declaration, and whether divergent national applications create administrative burdens for directors operating cross-border.
The written question, submitted on 28 April 2026, cites a statement in the minutes of the Council meeting on Directive 77/388/EEC, which allows Member States to consider managers, directors, supervisory board members, and company liquidators as not liable to VAT if they form part of the company. Cassart asks two specific questions: first, whether a Member State today would be required to consider services provided by directors who are natural persons as falling within the scope of VAT; second, whether such directors have no VAT administrative obligations in their Member State of residence, even if they serve as directors in another Member State that does not apply the exclusion.
The question seeks to resolve legal uncertainty for directors and national tax authorities. If the Council confirms the continued validity of the exclusion, directors in applying Member States would face no VAT obligations, while those in non-applying states would remain subject to VAT rules. This divergence could complicate compliance for directors active in multiple jurisdictions.
Cassart's question reflects a concern for legal clarity and equal treatment within the single market. The Council is expected to reply within approximately six weeks; its answer will signal whether the 1977 declaration remains relevant or whether harmonisation is needed to avoid fragmentation. The issue affects company directors, tax authorities, and businesses relying on director services across borders.
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