EU Advocate General: No-Cure-No-Pay Services Subject to VAT Despite Conditional Payment

• Advocate General Kokott concluded that no-cure-no-pay services are taxable for VAT purposes.
• The payment is taxable even if it is conditional and uncertain at the time of service.
• In Bulgaria, lawyers can provide free legal services to those in economic difficulty.
• T.P.T. provided free legal services and was awarded a fee by the court, which Financial Bulgaria must pay.
• T.P.T. believes VAT should be applied to the fee, but Financial Bulgaria disagrees.
• The conclusion states that certainty of payment amount is not required for VAT liability.
• The legal relationship can be contractual or statutory.
• There is a direct link between payment and no-cure-no-pay services.
• The comparison to the Baštová case is not applicable as it involved prize money, not a direct service payment.
• The EU Court of Justice has yet to make a ruling on this case.

Source: vanoers.nl

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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