Bulgaria Parliament to Tax Legal Representation Fees

The Bulgarian parliament approved the application of VAT to professional fees for legal representation cases. Photo by BGNES

The Bulgarian Parliament, in adopting changes to the Value Added Tax (VAT) Act on Wednesday, has approved the application of VAT to legal fees.

The tax will be applied to legal fees payable for the defense of physical persons in pre-legal, legal, administrative and arbitration proceedings.

The European Union had previously criticized Bulgaria for allowing VAT-free lawyers’ fees. The changes bring Bulgaria into line with EU law.

Opponents of the move state it is an unfair imposition on clients, who would now become responsible for paying this additional tax for legal representation.

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