The services provided by lawyers and solicitors on duty were not subject to VAT . We poland telegram must remember that we are always talking about the case in which the person who needs such services is a beneficiary of the right to free legal assistance. The Directorate General of Taxes (DGT) in a binding consultation Vo179-17 of January 25, 2017 has changed its criteria regarding VAT on this type of services following a ruling by the Court of Justice of the European Union.
Previous criterion
In the resolution of June 18, 1986 of the General Directorate of Taxes, it was established that the services provided during the Duty Shift lacked the character of compensation or remuneration, and therefore were not subject to VAT.
The resolution refers to article 7.5 of Law 37/1992, of December 28, on Value Added Tax. free of charge is not subject to tax. It is understood that the services provided by lawyers and solicitors on duty (when they are appointed by a person who benefits from the right to free legal assistance) are not remunerated , and said services are mandatory for these professionals and free of charge. Therefore, they are not subject to VAT.
On 28 July 2016, the Court of Justice of the European Union issued a ruling declaring that services provided by professionals on duty must be subject to VAT.
The Belgian Constitutional Court has referred a preliminary question to the CJEU: whether the VAT liability of services provided by legal aid lawyers is compatible with the right to effective judicial protection and, in particular, with the right to legal assistance.
The Court, pursuant to Article 132.1(g) of Directive 2006/112, states that services provided by lawyers under the legal aid scheme at issue in the main proceedings are not exempt from VAT . It states that the fact that services provided by lawyers under this national legal aid scheme are subject to VAT does not infringe the right to effective judicial protection of individuals who benefit from such assistance.
The answer to the first question, point (c), is that Article 132(1)(g) of Directive 2006/112 must be interpreted as meaning that services provided by lawyers to individuals who benefit from legal aid under a national legal aid scheme, such as that at issue in the main proceedings, are not exempt from VAT .
New criterion
The General Directorate of Taxes, based on the arguments of the European ruling, considers that these services do have an onerous character. Therefore, the Duty Free Service is subject to VAT . The DGT, applying the jurisprudence of the European Court, changes its criteria, considering that the free legal assistance services are paid and therefore, subject to VAT. They have an onerous character because they are paid, not by the beneficiary but by a third party (the Public Administration).