The work of lawyers performing tasks “closely linked” to social assistance can be exempt from value-added tax, the EU’s top court said Thursday.
The European Court of Justice was addressing a dispute in Luxembourg between a lawyer and the Luxembourg VAT authority over the taxation of work related to the protection of adults lacking legal capacity. The case had been referred by the Luxembourg District Court.
The tax authority had claimed VAT of more than 75,000 euros ($89,000) for work completed in 2014 and 2015. The lawyer argued his services should be exempt, saying they fulfilled a social function.