- Taxable Transaction Determination: Advocate General Kokott has concluded that the no-cure-no-pay legal services provided by T.P.T. are supplied for consideration, making them taxable transactions for VAT purposes, regardless of uncertainties regarding payment amounts.
- Legal Context in Bulgaria: Under Bulgarian law, lawyers can provide legal services for free to economically disadvantaged individuals. In this case, T.P.T. offered such a service against Financial Bulgaria EOOD, leading the court to order Financial Bulgaria to pay the statutory fee to T.P.T.
- VAT Implications: T.P.T. requested VAT on the fee awarded by the court, which Financial Bulgaria contested, arguing the services were provided free of charge. However, Advocate General Kokott ruled that the service is subject to VAT based on the fees actually received, meaning Financial Bulgaria is responsible for paying the VAT to T.P.T.
Source Taxlive
See also
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
