In this article, the authors outline recent changes to the VAT treatment of directors’ fees in Luxembourg, following recent ECJ judgments and the Luxembourg District Court. These rulings clarified that directors are not considered taxable persons for VAT purposes if they do not act independently. The authors also highlight key legal developments and the implications for directors and companies. In addition, the authors discuss the potential impacts if directors provide a broader scope of assistance than the sole provision of directorship services as members of the board of directors.