- 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
See also
- ECJ Case C-744/23 (Zlakov) – AG Opinion – Pro Bono Legal Services are subject to VAT
- Flashback on ECJ Cases C-432/15 (Pavlína Baštová) – Prize money is not a Taxable Transaction for VAT purposes – VATupdate
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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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