Updated: Nov 18
With effect from 01 January 2023, the performance of a Director’s function, by a natural person and for a remuneration (monetary or in kind), on a Board of Directors of any government or private sector entity, shall not be considered to be a supply of services for VAT purposes.
Prior to 01 January 2023, the general rule was that services provided by Directors, whether the function was performed by a natural person or a legal person, were considered to be services for VAT purposes.
These supplies of services were taxable where: - the Director performed the services on a regular, ongoing, and independent basis, and
- the total value of taxable supplies and imports made by the Director, not limited to but also including the Director services, exceeded the mandatory registration threshold.
The Public Clarification can be downloaded from here:
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