Commission Requests the Netherlands to Modify Rules on VAT Treatment of Participation in Supervisory Boards
The European Commission has formally requested The Netherlands to modify its rules on the VAT treatment of members of supervisory boards to comply with EU legislation. In the absence of a satisfactory response within two months, the Commission may refer The Netherlands to the EU's Court of Justice.
Under Dutch rules, individuals do not have to register for VAT, pay VAT on the compensation they receive or file VAT returns, if they hold no more than four positions as a member of supervisory boards. The Commission considers serving as a member of even one supervisory board as an economic activity subject to VAT.