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Flashback on ECJ cases – Joined Cases C-427/16 and C-428/16 (CHEZ Elektro Bulgaria and FrontEx International) – local pricing legislation may not lead to double VAT on lawyer fees

This case was about Bulgarian legislation which does not allow a lawyer and his client to agree remuneration in an amount below the minimum amount laid down in a regulation issued by a lawyers’ professional organisation. The ECJ ruled that article 78 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax must be interpreted as precluding national legislation such as that at issue in the main proceedings, by virtue of which VAT forms an inseparable component part of a registered lawyers’ fees, if that legislation leads to double taxation of those fees in respect of VAT.

Source: Curia

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