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Comments on ECJ C-744/23: AG Opinion – Taxability of No-Win No-Fee Lawyer Payments

  • The AG delivered an opinion on May 8, 2025, in case C-744/23 Zlakov regarding the taxability of contingency fees.
  • The case examines if a lawyer’s no-win no-fee remuneration is a taxable supply.
  • The AG concluded that the uncertainty of payment does not break the link between services provided and remuneration received.
  • The AG distinguished this case from the Baštová judgment, which suggested uncertainty could break the link between supply and payment.
  • Most Member States already tax contingency fees, so the opinion may not cause significant changes.
  • The case could affect taxpayers relying on Baštová for non-taxation of uncertain payments.
  • The AG’s opinion diverges from the Court’s precedent, making it uncertain if the CJEU will adopt all aspects of the reasoning.
  • Taxpayers should monitor developments if they do not currently impose VAT on contingent fees.

Source: alvarezandmarsal.com

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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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