C-744/23 Zlakov

JUDGMENT OF THE COURT (First Chamber)

23 October 2025 ( *1 )

(Reference for a preliminary ruling – Taxation – Common system of value added tax (VAT) – Directive 2006/112/EC – Transactions subject to VAT – Article 2(1)(c) – Supply of services for consideration – Article 9(1) – Taxable person – Legal assistance provided free of charge by a lawyer to a party in legal proceedings – Payment of that lawyer’s fees by the unsuccessful opposing party)

In Case C‑744/23 [Zlakov], ( i )

REQUEST for a preliminary ruling under Article 267 TFEU from the Sofiyski rayonen sad (Sofia District Court, Bulgaria), made by decision of 29 November 2023, received at the Court on 1 December 2023, in the proceedings

Т.P.T.

v

‘Financial Bulgaria’ EOOD,

THE COURT (First Chamber),

composed of F. Biltgen, President of the Chamber, T. von Danwitz, Vice-President of the Court, acting as Judge of the First Chamber, I. Ziemele, A. Kumin (Rapporteur) and S. Gervasoni, Judges,

Advocate General: J. Kokott,

Registrar: A. Calot Escobar,

having regard to the written procedure,

after considering the observations submitted on behalf of:

‘Financial Bulgaria’ EOOD, by P. Damyanov and M. Kozhuharova,

the Polish Government, by B. Majczyna, acting as Agent,

the European Commission, by M. Herold and G. Koleva, acting as Agents,

after hearing the Opinion of the Advocate General at the sitting on 8 May 2025,

gives the following

Judgment

Legal context and the dispute

1This request for a preliminary ruling concerns the interpretation of Article 2(1)(c), Article 24(1), Article 26(1)(b), Article 28 and Article 75 of Council Directive 2006/112/ЕC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1) (‘the VAT Directive’).

2The request has been made in proceedings between T.P.T. and ‘Financial Bulgaria’ EOOD concerning an application made by T.P.T.’s lawyer seeking that Financial Bulgaria pay him, in addition to his fees, the value added tax (VAT) calculated on the amount of those fees.

Legal context

European Union law

3Article 2(1)(c) of the VAT Directive states that ‘the supply of services for consideration within the territory of a Member State by a taxable person acting as such’ is to be subject to VAT.

4The first subparagraph of Article 9(1) of that directive provides:

‘“Taxable person” shall mean any person who, independently, carries out in any place any economic activity, whatever the purpose or results of that activity.’

5Article 24(1) of that directive provides:

‘“Supply of services” shall mean any transaction which does not constitute a supply of goods.’

6Article 26(1) thereof states:

‘Each of the following transactions shall be treated as a supply of services for consideration:

…

the supply of services carried out free of charge by a taxable person for his private use or for that of his staff or, more generally, for purposes other than those of his business.’

7Article 28 of the VAT Directive provides:

‘Where a taxable person acting in his own name but on behalf of another person takes part in a supply of services, he shall be deemed to have received and supplied those services himself.’

8Article 75 of that directive is worded as follows:

‘In respect of the supply of services, as referred to in Article 26, where goods forming part of the assets of a business are used for private purposes or services are carried out free of charge, the taxable amount shall be the full cost to the taxable person of providing the services.’

Bulgarian law

9The Zakon za advokaturata (Law on the Legal Profession), as in force on the date of the facts at issue in the main proceedings (‘the ZA’), provides, in Article 38 thereof:

‘(1) A lawyer or a lawyer from the European Union may provide legal aid and assistance that are free of charge to …:

…

2persons in financial difficulties;

…

(2) In the cases referred to in paragraph 1, if, in the proceedings at issue, the opposing party has been ordered to pay the costs, the lawyer or lawyer from the European Union shall be entitled to remuneration. The court shall set the remuneration at least in the amount laid down by the regulation [referred to in] Article 36(2) of [the ZA] and shall order the opposing party to pay that remuneration.’

The dispute in the main proceedings and the questions referred for a preliminary ruling

10T.P.T. brought a civil action against Financial Bulgaria seeking a declaration of nullity of a security agreement concluded between them in the context of a consumer credit agreement. To that end, T.P.T. was represented in court by a lawyer, acting as a one-person law firm, on the basis of a contract concluded with the latter. That legal assistance was provided to him free of charge under Article 38(1)(2) of the ZA.

11Since T.P.T. was successful in his case, the Sofiyski rayonen sad (Sofia District Court, Bulgaria), which is the referring court, ordered, by decision of 3 August 2023, Financial Bulgaria to pay an amount of 400 leva (BGN) to T.P.T.’s lawyer under Article 38(2) of the ZA, without, however, including VAT.

12On 13 October 2023, T.P.T.’s lawyer filed an application with the referring court seeking the alteration of the decision of 3 August 2023 so that he would be granted, in addition to his fees, payment of VAT calculated on the amount of BGN 400, which amounts to BGN 80.

13Financial Bulgaria opposed that application, arguing that there was no reason to award payment of the VAT on the lawyer’s fees since legal assistance had been provided free of charge to T.P.T.

14The referring court states that T.P.T.’s lawyer is registered under the Bulgarian law on VAT and that, if that lawyer provides his services on the basis of an agreement providing for remuneration to be paid by his client, the lawyer’s fees should therefore be subject to VAT.

15According to that court, it should be clarified whether the same applies where the representation of the client in court by his or her lawyer is provided free of charge and the competent court orders the unsuccessful opposing party to pay, directly to that same lawyer, the equivalent of what that lawyer would have been awarded if that supply of services had been effected in return for fees. In particular, the referring court questions whether, in such circumstances, the lawyer must be regarded as a taxable person and whether the provision of legal assistance constitutes a supply of services for consideration, or even a supply of services free of charge which must be treated as a supply of services for consideration.

16In those circumstances, the Sofiyski rayonen sad (Sofia District Court) decided to stay the proceedings and to refer the following questions to the Court of Justice for a preliminary ruling:

Is a “supply of services” within the meaning of Article 2(1)[(c)], Article 24(1), Article 26(1)(b) and Article 28 of [the VAT Directive] to be interpreted as including:

the provision of legal aid free of charge (pro bono) by a lawyer to a party in court proceedings[?]

the provision of legal aid free of charge (pro bono) by the lawyer of a party which has been successful in a legal dispute, where the court awards that party’s lawyer the remuneration which he or she would have received if remuneration had been agreed under a contract for legal assistance[?]

Is a “supply of services carried out free of charge” within the meaning of Article 26(1)(b) of [the VAT Directive] to be interpreted as covering:

the provision of legal aid free of charge (pro bono) by a lawyer to a party in court proceedings[?]

the provision of legal aid free of charge (pro bono) by the lawyer of a party which has been successful in a legal dispute, where the court awards that party’s lawyer the remuneration which he or she would have received if remuneration had been agreed under a contract for legal assistance[?]

Is a “supply of services for consideration” within the meaning of Article 2(1)[(c)], Article 24(1) and Article 26(1)(b) of [the VAT Directive] to be interpreted as covering the provision of legal aid free of charge (pro bono) by a lawyer to a party which has been successful in the legal dispute, where the court awards that party’s lawyer the remuneration which he or she would have received if remuneration had been agreed under a contract for legal assistance[?]

Is “taxable person” within the meaning of Article 28 and Article 75 of [the VAT Directive] to be interpreted as covering:

a lawyer (a one-person law firm) who has provided legal aid free of charge (pro bono) to a party in court proceedings[?]

a lawyer (a one-person law firm) who has provided legal aid free of charge (pro bono) to a party which has been successful in a legal dispute, where the court awards that party’s lawyer (the one-person law firm) the remuneration which he or she would have received if remuneration had been agreed under a contract for legal assistance[?]’

Consideration of the questions referred

17According to settled case-law of the Court, in the procedure laid down by Article 267 TFEU providing for cooperation between national courts and the Court of Justice, it is for the latter to provide the national court with an answer which will be of use to it and enable it to determine the case before it. To that end, the Court should, where necessary, reformulate the questions referred to it. In that regard, it is for the Court to extract from all the information provided by the national court, in particular from the grounds of the order for reference, the points of EU law which require interpretation, having regard to the subject matter of the dispute (see, to that effect, judgments of 13 December 1984, Haug-Adrion, 251/83, EU:C:1984:397, paragraph 9, and of 30 April 2024, M.N. (EncroChat), C‑670/22, EU:C:2024:372, paragraph 78).

18In the present case, taking into account the factual context as provided in the order for reference, the questions referred must be understood as inviting the Court to determine whether the provisions of Article 2(1)(c), Article 24(1), Article 26(1)(b), Article 28 and Article 75 of the VAT Directive must be interpreted as meaning that the representation of a party in court by a lawyer in circumstances where a service is provided free of charge, but where the legislation of the Member State concerned provides that the opposing party, in the event that that party is ordered to pay the costs, is also ordered to pay to that lawyer fees, the amount of which is regulated by that legislation, must be regarded as a supply of services for consideration or a supply of services carried out free of charge which must be treated as a supply of services for consideration.

19To answer that question thus reformulated, it must be borne in mind that, under Article 2(1)(c) of the VAT Directive, supplies of services for consideration within the territory of a Member State by a taxable person acting as such are to be subject to VAT.

20In that regard, the first subparagraph of Article 9(1) of the VAT Directive states that ‘taxable person’ means any person who, independently, carries out any economic activity, whatever the purpose or results of that activity. In addition, under Article 24(1) of that directive, ‘supply of services’ means any transaction which does not constitute a supply of goods.

21In the present case, as the Advocate General noted, in essence, in points 33 and 34 of her Opinion, T.P.T.’s lawyer, who is registered in accordance with the Bulgarian law on VAT, must be regarded as a taxable person, within the meaning of Article 9(1) of the VAT Directive, without it being relevant, in that context, that the lawyer’s fees were awarded to him in respect of a person to whom he provided legal assistance free of charge and who was successful.

22Furthermore, it should be noted that the representation of a client in court by a lawyer constitutes a supply of services within the meaning of Article 24(1) of the VAT Directive.

23As regards the question whether a supply of services such as that at issue in the main proceedings constitutes a supply of services carried out ‘for consideration’, it is settled case-law that classifying a supply of services as a transaction ‘for consideration’, within the meaning of Article 2(1)(c) of the VAT Directive, requires only that there be a direct link between that supply and the consideration actually received by the taxable person. Such a direct link is established if there is a legal relationship between the provider of the service and the recipient pursuant to which there is reciprocal performance, the remuneration received by the provider of the service constituting the actual consideration for the service supplied to the recipient (judgment of 21 December 2023, Administration de l’enregistrement, des domaines et de la TVA (VAT – Member of a board of directors), C‑288/22, EU:C:2023:1024, paragraph 33 and the case-law cited).

24By contrast, the direct link between the supply of services and the consideration is broken when the remuneration is awarded in a voluntary and uncertain way so that its amount is practically impossible to determine or where its amount is difficult to quantify or the circumstances relating to its calculation are uncertain (judgment of 21 December 2023, Administration de l’enregistrement, des domaines et de la TVA (VAT – Member of a board of directors), C‑288/22, EU:C:2023:1024, paragraph 36 and the case-law cited).

25In the present case, first, it is apparent from the order for reference that there is a contract between T.P.T. and that party’s lawyer, whose subject matter is the provision of legal assistance free of charge under Article 38(1)(2) of the ZA. Secondly, since T.P.T. was successful in the relevant legal proceedings, the opposing party was ordered, under Article 38(2) of the ZA, to pay that lawyer the lawyer’s fees, the amount of which was set according to the arrangements provided by law, by reference to the minimum amounts of lawyer’s fees.

26Consequently, the existence of a direct link between the legal assistance provided by T.P.T.’s lawyer and the lawyer’s fees paid to him is evidenced both by a contract and by law.

27In that context, the fact that the lawyer’s fees are obtained not from the party to which legal assistance was provided, but from the opposing party and therefore from a third party is irrelevant. For a supply of services to be deemed to be ‘for consideration’ within the meaning of the VAT Directive, it is not necessary that the consideration for that supply be obtained directly from the recipient thereof (judgment of 21 December 2023, Administration de l’enregistrement, des domaines et de la TVA (VAT – Member of a board of directors), C‑288/22, EU:C:2023:1024, paragraph 40 and the case-law cited).

28Furthermore, the finding in paragraph 26 of the present judgment is not called into question by the uncertainty concerning the payment of lawyers’ fees due to the absence of any guarantee as to the success of the legal proceedings and, consequently, as to an order that the opposing party must pay those fees.

29While it is true that it is apparent from the Court’s case-law, and more specifically from the judgments of 3 March 1994, Tolsma (C‑16/93, EU:C:1994:80, paragraph 19), and of 10 November 2016, Baštová (C‑432/15, EU:C:2016:855, paragraph 29), that the uncertain nature of any payment is such as to break the direct link between the service provided to the recipient and any payment which may be received, the fact remains that the situation at issue in the main proceedings and the situations at the origin of the cases which gave rise to those judgments are not comparable.

30Thus, the judgment of 3 March 1994, Tolsma (C‑16/93, EU:C:1994:80), concerned a musician who performed in public and received donations from passers-by. In that regard, the Court found, in paragraphs 16 and 17 of that judgment, that that income did not constitute consideration for a service supplied to passers-by since, first, there was no agreement between the parties, since the passers-by voluntarily made a donation, whose amount they determined as they wished, and that, secondly, there was no necessary link between the musical service and the payments to which it gave rise.

31The judgment of 10 November 2016, Baštová (C‑432/15, EU:C:2016:855), concerned, among other things, the question of whether the provision of a horse by a taxable person to a horse race organiser to have that horse participate in that race constituted a supply of services for consideration.

32In that regard, the Court found, in paragraphs 35 and 37 of that judgment, that, in principle, such provision cannot be regarded as effective consideration for the service supplied by the race organiser and consisting in enabling that owner to have his horse participate in the horse race, where that service is remunerated by the payment, by the owner of the horse, of entrance and declaration fees reflecting the value actually given in return for the participation in the race and that any benefit, which the owner of the horse could possibly derive from that participation as a result of the increase in the value of the horse in the event that it is placed or the publicity gained by the horse from that participation, is difficult to quantify and uncertain. Furthermore, prize money, if any, awarded due to the placing of the horse at the end of the race cannot be regarded either as effective consideration for the provision of the horse since it is not that provision by the owner of the horse to the horse race organiser which, as such, leads to payment of prize money, but the achievement of a certain result at the end of the race.

33Although, in the dispute in the main proceedings, the payment of the lawyer’s fees is subject to a risk depending on the outcome of the trial, those fees represent, however, effective consideration for the service consisting of the representation of the client in court.

34In so far as the referring court refers, moreover, to Article 26(1)(b), Article 28 and Article 75 of the VAT Directive, it is sufficient to note that none of those provisions applies to a service such as that at issue.

35In the light of all the foregoing considerations, the answer to the questions referred is that Article 2(1)(c) of the VAT Directive must be interpreted as meaning that the representation of a party in court by a lawyer constitutes a supply of services for consideration within the meaning of that provision, in circumstances where that supply is provided free of charge, but where the legislation of the Member State concerned provides that the opposing party, in the event that the latter is ordered to pay the costs, is also ordered to pay that lawyer fees, the amount of which is regulated by that legislation.

Costs

36Since these proceedings are, for the parties to the main proceedings, a step in the action pending before the referring court, the decision on costs is a matter for that court. Costs incurred in submitting observations to the Court, other than the costs of those parties, are not recoverable.

Operative part

On those grounds, the Court (First Chamber) hereby rules:

Article 2(1)(c) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax

must be interpreted as meaning that the representation of a party in court by a lawyer constitutes a supply of services for consideration within the meaning of that provision, in circumstances where that supply is provided free of charge, but where the legislation of the Member State concerned provides that the opposing party, in the event that the latter is ordered to pay the costs, is also ordered to pay that lawyer fees, the amount of which is regulated by that legislation.

Signatures

[Signatures]

( *1 ) Language of the case: Bulgarian.

( i ) The name of the present case is a fictitious name. It does not correspond to the real name of any party to the proceedings.

OPINION OF ADVOCATE GENERAL

KOKOTT

of 8 May 2025 ¹

(Reference for a preliminary ruling – Common system of value added tax – Directive 2006/112/EC – Taxable transactions – Absence of consideration for a service due to the uncertainty of a contingency fee – pro bono legal advice given by a lawyer registered as a taxable person liable for VAT – Statutory minimum fee payable by the unsuccessful party in the event of a successful outcome)

I. Introduction

1In principle, VAT law taxes only transactions in which a taxable person supplies another person with a consumer good, in the form of a good or service in return for consideration. As a general rule, a supply of services free of charge by a taxable person to consumers is not taxable. However, services are rarely supplied free of charge since business enterprises have nothing to give away in the normal course of business. More frequently encountered are contingency fees, whereby the consideration for a service is payable only under certain conditions, in other words the amount of the fee is still uncertain at the time the service is provided.

2But how should the assessment be performed for the purposes of VAT law if a lawyer provides services to his or her client free of charge, but nevertheless receives a statutory minimum fee from the unsuccessful opposing party in the event of a successful outcome? If a third party effects a payment (in the present case, is required to effect a payment) in respect of a service provided, can that service be regarded as a service supplied free of charge that is not taxable?

3For the unsuccessful party, that question relates to an amount corresponding to 20% of the lawyer’s fees to be reimbursed, that is to say a total of 80 leva (BGN) ² in the present case. The decisive issue for the lawyer is whether he has to pay 20/120 of the received minimum fee to the State of Bulgaria. For Bulgaria, the question arises as to whether its tax revenue depends primarily on whether and to what extent the lawyer is ultimately remunerated, or also by whom or on what basis he is remunerated (contractually by his client or compulsorily by law by the unsuccessful party).

4A great deal of uncertainty in practice ³ has resulted from the reasoning set out in the decision of the Court of Justice in Baštová ⁴ in 2016 in view of the fact that – at least on a superficial reading – it was based solely on the uncertainty (‘a degree of uncertainty’) of the remuneration for the purposes of justifying that a prize for the winner of a competition was not remuneration for a service. In the event of such uncertainty, the link between the service provided and any payment received could be broken. This statement was supported by a reference to the case in Tolsma, ⁵ which, however, appears to have mainly concerned payments made for altruistic motives (in particular out of compassion).

5The Court of Justice now has the opportunity to clarify its in fact rather vague statements in the judgment in Baštová. In effect, the present case calls for a decision on one of the fundamental questions of VAT law – that is to say the question of whether a supply of services is taxable – that is ultimately not only correct but also based on the correct reasoning.

II. Legal framework

A. European Union law

6Article 2(1)(c) of Directive 2006/112/EC on the common system of value added tax ⁶ (‘ the VAT Directive’) provides:

‘The following transactions shall be subject to VAT:

…

the supply of services for consideration within the territory of a Member State by a taxable person acting as such’.

7Article 9(1) of the VAT Directive provides:

‘“Taxable person”’ shall mean any person who, independently, carries out in any place any economic activity, whatever the purpose or results of that activity.

Any activity of producers, traders or persons supplying services, including mining and agricultural activities and activities of the professions, shall be regarded as “economic activity”. The exploitation of tangible or intangible property for the purposes of obtaining income therefrom on a continuing basis shall in particular be regarded as an economic activity.’

8Article 26(1)(b) of the VAT Directive concerns the supply of services free of charge, and provides:

‘(1) Each of the following transactions shall be treated as a supply of services for consideration:

…

the supply of services carried out free of charge by a taxable person for his private use or for that of his staff or, more generally, for purposes other than those of his business.’

9Article 28 of the VAT Directive concerns the commission business in relation to services, and provides:

‘Where a taxable person acting in his own name but on behalf of another person takes part in a supply of services, he shall be deemed to have received and supplied those services himself.’

10Article 73 of the VAT Directive governs the taxable amount:

‘In respect of the supply of goods or services, other than as referred to in Articles 74 to 77, the taxable amount shall include everything which constitutes consideration obtained or to be obtained by the supplier, in return for the supply, from the customer or a third party, including subsidies directly linked to the price of the supply.’

B. Bulgarian law

11Bulgaria has transposed the VAT Directive into Bulgarian law by means of the Zakon za danak varhu dobavenata stoynost (Law on value added tax; ‘the ZDDS’).

12There is also a Grazhdanski protsesualen kodeks (Code of Civil Procedure; ‘the GPK’), which contains various rules on the determination of costs in court proceedings.

13Article 78(1) of the GPK relates to decisions on costs and provides:

‘The charges paid by the applicant, costs and the lawyers’ remuneration, if the applicant had a lawyer, shall be borne by the defendant in proportion to the part of the claim which was upheld.’

14The Zakon za advokaturata (Law on the legal profession; ‘the ZA’) concerns the exercise of the activity of a lawyer.

15Article 36(1) and (3) of the ZA provides:

‘(1) The lawyer or lawyer from the European Union shall be entitled to remuneration for his or her work.

(3) In the absence of a contract, the bar council shall, at the request of the lawyer, lawyer from the European Union or client, set remuneration in accordance with the Regulation of the [Vissh advokatski savet (Supreme Bar Council, Bulgaria)].’

16Article 38 of the ZA concerns the provision of lawyers’ services free of charge and provides:

‘(1) The lawyer or lawyer from the European Union may as adviser represent and assist free of charge:

1. persons entitled to maintenance;

2. persons in financial difficulties;

3. relatives, close associates or another legal professional.

(2) In the cases referred to in paragraph 1, if the opposing party has been ordered to pay the costs, the lawyer or lawyer from the European Union shall be entitled to remuneration. The court shall set the remuneration at least in the amount laid down by the Regulation [of the Supreme Bar Council] in accordance with Article 36(2) of [the ZA] and shall order the opposing party to pay that remuneration.’

17Article 7(2) of the Regulation of the Supreme Bar Council in accordance with Article 36(2) of the ZA (Naredba № 1 ot 9 Yuli 2004 g. za minimalnite razmeri na advokatskite vaznagrazhdenia (Regulation No 1 of 9 July 2004 on the minimum amounts of lawyers’ remuneration; ‘the NMRAV’)) provides:

‘For legal representation, defence and participation in proceedings involving a particular interest, the fee shall be as follows:

1. in the case of an interest of up to BGN 1000: BGN 400’.

18A supplementary provision to that regulation (‘supplementary provision’) concerns VAT; Paragraph 2a thereof provides:

‘In the case of lawyers not registered under the ZDDS, the amount of the remuneration may not include VAT, whereas, in the case of registered lawyers, the VAT owed shall be levied on the basis of the remuneration determined in accordance with this Regulation and shall be deemed to be an inseparable component of the lawyer’s remuneration payable by the client, the VAT owed to be established in accordance with the provisions of the ZDDS.’

III. Facts

19The request for a preliminary ruling arises from a civil action seeking a declaration of nullity of the contract entered into between the parties in relation to the security for a consumer credit agreement. The applicant in those proceedings is represented by a one-person law firm (‘the law firm’).

20In the course of the proceedings, the law firm requested the court to award it a lawyer’s fee plus VAT. The law firm is registered as a taxable person under the ZDDS.

21In accordance with the submitted power of attorney and the contract for legal protection and assistance in legal matters, the legal services were provided to the applicant free of charge; that is permitted under Article 38(1)(2) of the ZA in the case of legal services provided to persons in economic difficulty.

22The action was upheld by judgment No 13461/03.08.2023 in civil case No 20221110142769, entered on the case list for 2022. Referring to the NMRAV, the court held that the lawyer’s minimum fee in respect of an economic interest of BGN 185.52 (contractual value) amounted to BGN 400. Since the applicant was represented by a lawyer under the conditions of a supply of legal services free of charge, the court ordered the defendant to pay the amount of BGN 400, excluding VAT. The payment is to be made not to the party, but directly to the law firm. No appeal was brought against that judgment and it became final on 25 September 2023.

23However, within the time limit for lodging an appeal, the law firm filed an application requesting that the judgment be amended as regards the costs. In that application, the court was requested to award VAT on the sum of BGN 400 in the amount of BGN 80 (tax at a rate of 20% on a taxable amount of 400).

24The defendant opposes that application and contends that the court should not award VAT on the lawyer’s fees in question because legal aid was provided by the applicant’s lawyer to the applicant free of charge. It refers to the (albeit apparently inconsistent) case-law of the Varhoven kasatsionen sad (Supreme Court of Cassation, Bulgaria).

IV. Request for a preliminary ruling

25The Sofiyski rayonen sad (Sofia District Court, Bulgaria), which has jurisdiction to rule on costs, stayed the proceedings and referred the following questions to the Court of Justice for a preliminary ruling under Article 267 TFEU:

Is a ‘supply of services’ within the meaning of Article 2(1)(c), Article 24(1), Article 26(1)(b) and Article 28 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax to be interpreted as including:

the provision of legal aid free of charge (pro bono) by a lawyer to a party in court proceedings;

the provision of legal aid free of charge (pro bono) by the lawyer of a party which has been successful in a legal dispute, where the court awards that party’s lawyer the remuneration which he or she would have received if remuneration had been agreed under a contract for legal assistance?

Is a ‘supply of services carried out free of charge’ within the meaning of Article 26(1)(b) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax to be interpreted as covering:

the provision of legal aid free of charge (pro bono) by a lawyer to a party in court proceedings;

the provision of legal aid free of charge (pro bono) by the lawyer of a party which has been successful in a legal dispute, where the court awards that party’s lawyer the remuneration which he or she would have received if remuneration had been agreed under a contract for legal assistance?

Is a ‘supply of services for consideration’ within the meaning of Article 2(1)(c), Article 24(1) and Article 26(1)(b) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax to be interpreted as covering the provision of legal aid free of charge (pro bono) by a lawyer to a party which has been successful in the legal dispute, where the court awards that party’s lawyer the remuneration which he or she would have received if remuneration had been agreed under a contract for legal assistance?

Is ‘taxable person’ within the meaning of Article 28 and Article 75 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax to be interpreted as covering:

a lawyer (a one-person law firm) who has provided legal aid free of charge (pro bono) to a party in court proceedings;

a lawyer (a one-person law firm) who has provided legal aid free of charge (pro bono) to a party which has been successful in a legal dispute, where the court awards that party’s lawyer (the one-person law firm) the remuneration which he or she would have received if remuneration had been agreed under a contract for legal assistance?’

26Only the defendant, Poland and the European Commission submitted written observations in the proceedings before the Court of Justice. In accordance with Article 76(2) of the Rules of Procedure of the Court of Justice, the Court did not consider it necessary to hold a hearing.

V. Legal assessment

A. The questions referred for a preliminary ruling

27By its four rather lengthy questions, the referring court is actually asking, in essence, about the interpretation to be given to Article 2(1)(c) of the VAT Directive. According to that provision, a supply of services for consideration within the territory of a Member State by a taxable person acting as such is a transaction subject to VAT (that is to say, a taxable transaction). If the service has not been provided for consideration, the service could still, under certain circumstances, be treated as supplied for consideration by virtue of Article 26(1)(b) of the VAT Directive.

28The concept of a ‘taxable person’, which the referring court is asking about in the context of Articles 28 and 75 of the VAT Directive, is defined in Article 9 of that directive and is already provided for under Article 2(1)(c) of the VAT Directive. Furthermore – as Poland and the Commission correctly argue – Article 28 of the VAT Directive is not relevant in the context of the present case, since that article provides for a supplier acting in his own name on behalf of another person. ⁷ This is not the case here because the legal advice is provided by the law firm in its own name and on its own behalf to the client. A principal (commissioning party) on whose behalf services are purchased or sold cannot be identified in the present case.

29Since, in the present case, remuneration was paid by the losing party in the proceedings, the questions referred are admissible and requiring of an answer to that extent only – as the Commission rightly emphasises. In summary, the key question to be answered by the Court of Justice is therefore:

Is Article 2(1)(c) of the VAT Directive to be interpreted as meaning that a service provided by a law firm to its clients free of charge, but in respect of which a statutory fee is payable by the unsuccessful party in the event of success, is provided for consideration, or is it a supply of services free of charge which is either not taxable, or for which consideration is presumed by virtue of Article 26?

30For the purposes thereof, I shall first explain that, in the context of a general tax on consumption, the concept of a supply of services effected for consideration must be interpreted broadly. It therefore follows that the decisive factor cannot be the question of who paid something for a consumable benefit (the other party to the contract or a third party), but only the question of whether something was paid to a taxable person for a consumable benefit (see the discussion under heading B.1).

31I will then explain why ambiguity (or uncertainty) as to the amount of the payment is immaterial for the purposes of VAT law and does not call into question the fact that a supply of services is effected for consideration (see the discussion under heading B.2.a). Even the fact that, in the present case, the unsuccessful party is required by law to pay costs does not alter the situation; that is because the Court of Justice has now adopted a broad understanding of the legal relationship it considers necessary (in that respect, see the discussion under heading B.2.b). Neither the rather vague statements made by the Court of Justice in Baštová nor the fairly broad reasoning set out in Tolsma militate against that. While those statements are ultimately correct in principle, the reasons underlying them relate to completely different situations (in that respect, see the discussion under heading B.2.c).

B. The existence of a taxable transaction

1. A supply of services for consideration or free of charge

32Article 2(1)(c) of the VAT Directive states that a supply of services for consideration by a taxable person acting as such is to be subject to VAT. In the present case, it is undisputed that the law firm provided legal advice to its client. They are not supplies within the meaning of Article 14 of the VAT Directive and are therefore a supply of services under Article 24 of that directive.

33The law firm is registered as a taxable person. There is nothing to indicate that the law firm does not carry out an economic activity within the meaning of Article 9 of the VAT Directive. Even in so far as it acted for its client free of charge, and was entitled to do so (see Article 38(1)(2) of the ZA), that is not the primary decisive factor for the purposes of VAT law.

34As Article 9 of the VAT Directive states, any person who carries out an economic activity is a taxable person, whatever the results of that activity. The Court of Justice has, in the meantime, made it clear on several occasions that the decisive factor in that regard is whether the activity is carried out in a manner similar to that of a typical taxable person (typological approach). ⁸ That can easily be affirmed where the person concerned is a lawyer – as in the present case – especially since not only contingency fees, but also the fact that, as a general rule, the unsuccessful party pays the fees (directly or indirectly), are fairly typical in that professional sector.

35It therefore follows that the legal advice and legal representation provided by the law firm is – as Poland also rightly argues – a service supplied by a taxable person. The only question that remains is thus whether the service was supplied for consideration.

36That question appears to be somewhat idiosyncratic in view of the fact that the dispute before the referring court actually hinges upon whether VAT of 20% (in the present case BGN 80) is payable in addition to the minimum fee of BGN 400. It is therefore obvious that the law firm receives a fee for its activity as a lawyer. It is even referred to in national law as a lawyers’ fee, which the lawyer is entitled to claim from the unsuccessful party (see Article 38(2) of the ZA). It is therefore surprising that there should be discussion of a supply of services free of charge in such a situation.

37That is apparently based solely on the fact that the client was in financial difficulties and therefore could, and did, receive advice free of charge. As agreed in the contract, the customer does not owe any consideration for the legal advice. However, that fact alone does not mean – as Poland rightly argues – that the services supplied by the law firm are services supplied free of charge for the purposes of VAT law.

38Indeed, the Court of Justice has already expressly stated that it is not necessary that the consideration for the supply of services must be obtained directly from the recipient thereof. It may also be obtained from a third party. ⁹ If a third party pays something for the transactions, the amount paid would therefore also be included in the taxable amount. An assumption is therefore made under the VAT Directive that consideration is paid even in cases where a party other than the contracting party pays the consideration for the service provided.

39In turn, that can easily be explained by the nature of VAT as a general tax on consumption. ¹⁰ VAT seeks, in effect, to tax the financial cost of obtaining a consumable good (that is to say a consumable benefit, whether that is a tangible good, as in the case of a supply, or a non-tangible benefit, as in the case of a service). In that regard, the decisive factor is that the consumable benefit is provided by a taxable person and that another person (usually the recipient of the service, but it can also be a third party – see Article 73 of the VAT Directive) has paid the taxable person something for that benefit.

40However, it is not a requirement under the VAT Directive that the benefit is provided on a contractual basis, although that will be the case in 99% of all cases. VAT is not a tax on legal transactions, or even a contractual tax, but – as the Court of Justice has always and correctly pointed out ¹¹ – a general tax on consumption that is intended to tax the consumer in proportion to his or her financial expenditure. However, in the present case, there is no doubt that the client consumed the legal advisory services. Although he himself did not have to bear any financial expenditure, Article 73 of the VAT Directive extends the scope of the financial expenditure subject to taxation to payments made by a third party for the supply.

41Thus, if a third party (in the present case, the unsuccessful party) pays (or is required to pay) to the law firm a minimum fee (as formulated in Article 38(2) and Article 36(2) of the ZA, read in conjunction with the NMRAV) by operation of law, then such a service is supplied for consideration. It is simply the case that, at the time the service is supplied, there is still uncertainty as to whether or not the fee will be paid (by the unsuccessful party) because the fee is payable only in the event of a successful outcome.

42Even in the case of a contractual contingency fee, which the client is required to pay only if the case is won, nobody would refer to a service supplied free of charge simply because the payment is made only at the very end and in the event of a successful outcome. Nor, if the case were unsuccessful, would anyone refer to a service supplied free of charge within the meaning of Article 26 of the VAT Directive. Furthermore, legal advice provided by a lawyer for a contingency fee does not constitute the supply of a service for purposes other than those of his or her business within the meaning of that provision. That would, however, be a precondition for a fictitious supply of services for consideration, as provided for in Article 26 of the VAT Directive, which is absent in the present case.

43Consequently, such a service will not be taxed if the case is unsuccessful because no one has made a financial outlay to the taxable person (lawyer) for the advisory service, which means that the reason for charging VAT has not arisen. However, that does not also mean that no VAT should be charged in the event of a successful outcome.

44The transaction at issue in the present case is an advisory service supplied for consideration in the form of an as yet uncertain fee from a third party, to which the law firm is entitled by operation of law (see Article 38(2) of the ZA).

2. Payment of consideration for a service

45At most, the statutory payment to be effected by the unsuccessful party could be irrelevant for the purposes of VAT law if it was not paid in consideration for the legal advisory service but rather for a non-taxable transaction.

46That would be conceivable if, for example, the payment (that is to say a person’s financial outlay) is not made in exchange for a consumable benefit, as is the case, for example, where compensation is effected for purely pecuniary losses (lost profit, ¹² or losses or damage caused by delay). The same applies to a mere gift (or donation) of money, for example for altruistic reasons. ¹³ Even prizes, for example in a game of chance or a horse race, are not paid out for a service provided to another person but ‘only’ as a prize on the occurrence of an uncertain event. ¹⁴

47Consequently, the only question to be decided in the present case is whether a payment made by a third party (in this case, the unsuccessful party) is paid for the legal advisory services provided by the law firm to its client. That requires a specific link between the payment and the service. That link is discussed in the case-law of the Court of Justice under the heading of a direct link between the service and the consideration (fee) received.

48Such a direct link is established if there is a legal relationship between the provider of the service and the recipient pursuant to which there is reciprocal performance, the remuneration received by the provider of the service constituting the actual consideration for the service supplied to the recipient. ¹⁵ However – as is also rightly apparent from the recent case-law of the Court of Justice – the necessary legal relationship is to be given a broad meaning. ¹⁶

(a) The uncertainty as to the specific amount of the consideration

49In particular, the direct link (or the legal relationship) is not called into question by the uncertainty as to the specific amount of the consideration (in this case 0, or 400 or 480). ¹⁷ The specific amount of the consideration is relevant only to the question as to the taxable amount, which is clear from Article 90 of the VAT Directive. That provision governs the consequences of and the adjustments to be made to the tax liability as a result of a change in the taxable amount (in this respect, price changes are covered in particular) and demonstrates that the VAT Directive does not require the consideration to be definitively established at the time of supply. Thus, (definitive) certainty as to the amount of the consideration is not constitutive for the existence of a taxable transaction.

50That is even more clearly apparent from Article 66 of the VAT Directive, which authorises Member States to introduce, generally, a so-called ‘actual taxation’, whereby the VAT liability owed is determined solely on the basis of the consideration received. Thus, the uncertainty as to the amount of the consideration to be paid is then relevant only for the purposes of assessing whether a tax liability has arisen and not for establishing whether a service is supplied for consideration. Accordingly, Article 66 of the VAT Directive refers to the point in time at which the tax claim arises.

(b) The need for and scope of a legal relationship

51In providing for the statutory entitlement to a lawyer’s fee in the event of a successful outcome, the Bulgarian legislator has, in my view, already created a sufficiently direct link between the payment effected by the third party and the service provided by the law firm to its client. While that might not be a purely contractual legal relationship, but could also be a statutory one, that does not preclude the existence of a taxable transaction under either the VAT directive or the case-law of the Court of Justice, contrary to what the defendant appears to suggest.

52On the contrary, the Court of Justice ¹⁸ has stated that the criterion relating to the existence of a legal relationship in the context of which the supply of goods takes place and the consideration for it is effected must be interpreted taking into account all of the circumstances of each individual case in such a way that the principle of fiscal neutrality is not disregarded. In that context – as the Court of Justice has expressly stated – that criterion must be given a broad meaning. If the client had paid the law firm directly, that would undoubtedly be an assessable and taxable transaction. If a third party pays the fee (in the present case, is required to pay it), that scenario can hardly be assessed differently.

53Even the payment for stolen electricity by an electricity thief led to the existence of a transaction for consideration because the direct link between the unlawful consumption and the ‘compensation’ was regulated by law and the ‘compensation’ (or rather: the compulsory remuneration) was tied to the specific consumption. ¹⁹ Hence, there was no reason to treat an electricity thief differently from a normal consumer for the purposes of VAT law. In the present case, there is also no reason to treat the transaction (that is to say, the legal advice) differently depending on who has to pay the remuneration for the services provided by a lawyer. In particular, it is irrelevant that the unsuccessful party does not pay voluntarily but is instead required to pay by operation of law.

54Likewise, the VAT revenue in Bulgaria – which is even said to have a direct impact on the European Union’s own resources ²⁰ – cannot depend on whether the utilised consumer good is paid for voluntarily by the client or by a third party (or must be paid for involuntarily). In other words, subjective elements are, in principle, alien to VAT law. ²¹

55Thus, according to the Court of Justice, ²² it is sufficient that the remuneration for the provision of a consumable benefit is governed by law. First, it is precisely that legislative framework that establishes a direct link between the provision of those benefits and the payment of the remuneration. Second, Article 25(c) of the VAT Directive expressly provides that a supply of services may consist, inter alia, of the performance of services by operation of law. That reasoning is also relevant in the present case. In that respect, the sole decisive factor is the presence of a direct link between the monetary payment and a specific consumer good. ²³

56Consequently, as the Commission also rightly emphasises, the minimum fee payable to the law firm by the unsuccessful party by operation of law constitutes consideration as referred to in Article 2(1)(c) of the VAT Directive. It is to be treated as a payment by a third party, within the meaning of Article 73 of that directive, for legal advice provided to the successful client.

(c) The Baštová and Tolsma cases

57That is not precluded by the aforementioned decisions in Baštová ²⁴ and in Tolsma. ²⁵

58The case in Tolsma concerned the case of a street musician to whom passers-by gave money, although the question as to their motives for doing so was left open. In any event, they were not bound to do so by contract. The Court of Justice considered it decisive that the passers-by did not request music to be played for them; moreover, they pay sums which depend not on the musical service but on subjective motives which may bring feelings of sympathy into play. ²⁶ The payments are – the Court of Justice continued –entirely voluntary and uncertain. ²⁷

59It is true that some of the passers-by may not have paid for the service (music performance) but rather, for example, out of sympathy. However, a gift or donation is not a payment for a service but simply a monetary payment that is independent of any ‘reciprocal performance’. However, it also appears inconceivable that none of the passers-by enjoyed the musical performance and therefore paid a sum of money for it.

60Since – as explained previously in this Opinion (point 51 et seq.) – the basis (contractual, statutory or non-contractual) upon which a consumer has paid something for the receipt of a consumable benefit (it appears undisputed that the enjoyment of music constitutes such a benefit, as shown by every paid concert attendance) is not a decisive factor, it follows that part of the money should have been regarded as consideration for a supply of services. The question regarding the extent to which the money collected relates to the service (thus giving rise to an assessable and taxable transaction) and the extent to which it was a gift or donation of money (that is to say that there is no taxable transaction), which is certainly not an easy question to clarify, is not in fact resolved for tax law purposes on the basis of an ‘all or nothing’ principle, but usually by means of an estimate. ²⁸

61If, however, it can indeed be assumed – as the Court of Justice states in paragraph 17 of the decision in Tolsma – that the passers-by paid all the sums not because of the musical service but for subjective reasons, which may bring feelings of sympathy into play, then there was in fact no taxable transaction on the part of the street musician in that regard. However, the present case is therefore not comparable with that case. The unsuccessful party does not pay for subjective reasons or based on feelings of sympathy. The payments by the unsuccessful party are neither voluntary nor dependent on chance. On the contrary, both their substantive basis and their amount is rooted in statute.

62On the other hand, the case in Baštová concerned the question as to whether the prize paid to a winner (that case concerned a horse race) could be regarded as consideration for a service provided by the winner. The Court of Justice rightly answered in the negative. ²⁹ Unfortunately, it based that conclusion almost exclusively on the fact that the award of the prize is subject to a specific competition result and to a degree of uncertainty. Such uncertainty would preclude the existence of a direct link between the supply of a horse and obtaining a prize. That is also ‘underpinned’ by the statement that the existence of a service must be assessed objectively and must be independent of the purpose and results of the transactions concerned.

63As already explained (see points 49 and 50), the uncertainties associated with a consideration will, at most, be relevant for the purposes of determining the amount of a tax, or the time at which the tax arises, but are not relevant as regards the question of whether there is a supply of goods or services for consideration. Despite all the associated uncertainties, variable fees (for example 10% of an as yet uncertain purchase price), fees subject to certain conditions (for example, contingency fees) or implied fees (in the absence of a specific agreement, the law assumes that the customary fees are deemed to have been agreed upon) have no bearing on whether there is a supply of services for consideration, in relation to which the respective fee is paid.

64The conclusion in the case in Baštová is correct because the prize does not relate to an activity (for example, participation in a race), but is solely an award or prize given for winning. However, winning a game or race is not a service, that is to say, it is not a consumable benefit that the winner can provide to another person. This distinguishes a prize from a payment for participation in a race. Participation in a race may – as the Court of Justice rightly held in the same case ³⁰ – constitute a service rendered to the organiser if, for example, the latter awards a payment for that participation in the race.

3. Summary

65In the present case, the fact therefore remains that the law firm provided an assessable and taxable service to its client and must therefore, as a registered taxable person, collect the VAT and pay it to the Bulgarian state. Consequently, the unsuccessful party must also pay that VAT to the law firm. The rule laid down in Paragraph 2a of the supplementary provision, according to which ‘in the case of lawyers not registered under the ZDDS, the amount of the remuneration may not include VAT, whereas, in the case of registered lawyers, the VAT owed shall be levied on the basis of the remuneration determined in accordance with this Regulation and shall be deemed to be an inseparable component of the lawyer’s remuneration payable by the client, the VAT owed to be established in accordance with the provisions of the ZDDS’, is therefore in line with VAT law.

VI. Conclusion

Conclusion

66I therefore propose that the Court of Justice answer the questions referred for a preliminary ruling from the Sofiyski rayonen sad (Sofia District Court, Bulgaria) as follows:

Article 2(1)(c) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax must be interpreted as meaning that a service provided by a law firm to its clients free of charge, but in respect of which a statutory fee is payable by the unsuccessful party in the event of success, is provided for consideration and therefore constitutes a taxable transaction. Neither the uncertainty as to whether a fee will be paid, and the amount thereof, nor the fact that the fee is payable by operation of law, nor the fact that a third party is required to pay the fee, preclude the service provided by the law firm from being subject to VAT based on the amount of the fee actually received.

¹ Original language: German.

( i ) The name of the present case is a fictitious name. It does not correspond to the real name of any party to the proceedings.

² The value of the claim in the present proceedings therefore corresponds to approximately EUR 41.

³ See only the decisions of the Bundesfinanzhof (Federal Fiscal Court, Germany; ‘the BFH’), in which it was necessary for the BFH to emphasise that the judgment of the Court of Justice in Baštová was not relevant for a performance-related fee – BFH, decision of 30 March 2021 – V B 63/20, MwStR (Mehrwertsteuerrecht (value added tax law)) 2021, 723, paragraph 37 et seq.; in the same vein, see BFH, judgment of 13 February 2019 – XI R 1/17, BStBl II 2021, 785, paragraph 46 et seq.; on the scope of the CJEU judgment having even been expressly left open – BFH, judgment of 10 June 2020 – XI R 25/18, UR 2020, 830, paragraph 45.

⁴ Judgment of 10 November 2016, Baštová (C‑432/15, EU:C:2016:855, paragraphs 29 and 35), which concerned a prize won on a horse at a horse race.

⁵ Judgment of 10 November 2016, Baštová (C‑432/15, EU:C:2016:855, paragraph 37) refers to the case-law cited in paragraph 28, and hence to the judgment of 3 March 1994, Tolsma (C‑16/93, EU:C:1994:80, paragraph 17 et seq.), which, however, concerned voluntary payments made by passers-by to a street musician.

⁶ Council Directive of 28 November 2006 (OJ 2006 L 347, p. 1) in the version applicable for the year at issue, namely 2023; most recently modified in that respect by Council Directive (EU) 2022/890 of 3 June 2022 (OJ 2022 L 155, p. 1).

⁷ In that regard, see only the case-law of the Court of Justice, in so far as it has already dealt with Article 28: Judgments of 30 March 2023, Gmina L. (C‑616/21, EU:C:2023:280, paragraph 31 et seq.); of 4 May 2017, Commission v Luxembourg (C‑274/15, EU:C:2017:333, paragraph 85 et seq.); and of 14 July 2011, Henfling and Others (C‑464/10, EU:C:2011:489, paragraph 34 et seq.).

⁸ Judgments of 4 July 2024, Latvijas Informācijas un komunikācijas tehnoloģijas asociācija (C‑87/23, EU:C:2024:570, paragraphs 47 and 56); of 30 March 2023, Gmina O. (C‑612/21, EU:C:2023:279, paragraph 35); and of 30 March 2023, Gmina L. (C‑616/21, EU:C:2023:280, paragraph 43).

⁹ Judgment of 4 July 2024, Latvijas Informācijas un komunikācijas tehnoloģijas asociācija (C‑87/23, EU:C:2024:570, paragraph 27). In that sense, see also the judgment of 30 March 2023, Gmina O. (C‑612/21, EU:C:2023:279, paragraph 26 and the case-law cited).

¹⁰ See, to that effect: judgments of 3 May 2012, Lebara (C‑520/10, EU:C:2012:264, paragraph 23); of 11 October 2007, KÖGÁZ and Others (C‑283/06 and C‑312/06, EU:C:2007:598, paragraph 37 – ‘it is proportional to the price charged by the taxable person in return for the goods and services which he has supplied’); and of 18 December 1997, Landboden-Agrardienste (C‑384/95, EU:C:1997:627, paragraphs 20 and 23 – ‘Only the nature of the undertaking given is to be taken into consideration: for such an undertaking to be covered by the common system of VAT it must imply consumption’).

¹¹ Judgments of 3 May 2012, Lebara (C‑520/10, EU:C:2012:264, paragraph 23); of 28 October 2010, Commission v Poland (C‑49/09, EU:C:2010:64, paragraph 44); and of 3 October 2006, Banca popolare di Cremona (C‑475/03, EU:C:2006:629, paragraph 21).

¹² Fully applicable: Judgment of 18 July 2007, Société thermale d’Eugénie-les-Bains (C‑277/05, EU:C:2007:440).

¹³ To that extent, see judgment of 3 March 1994, Tolsma (C‑16/93, EU:C:1994:80, paragraph 17 – ‘subjective motives which may bring feelings of sympathy into play’).

¹⁴ To that extent, see judgment of 10 November 2016, Baštová (C‑432/15, EU:C:2016:855). See also point 62 et seq. of this Opinion.

¹⁵ Judgments of 4 July 2024, Credidam (C‑179/23, EU:C:2024:571, paragraph 36); of 15 April 2021, Administration de l’Enregistrement, des Domaines et de la TVA (C‑846/19, EU:C:2021:277, paragraph 36); and of 3 March 1994, Tolsma (C‑16/93, EU:C:1994:80, paragraph 14).

¹⁶ Judgment of 27 April 2023, Fluvius Antwerpen (C‑677/21, EU:C:2023:348, paragraph 31).

¹⁷ Contrary to what may have been suggested in the judgments of 3 March 1994, Tolsma (C‑16/93, EU:C:1994:80, paragraph 14 et seq.); of 27 September 2001, Cibo Participations (C‑16/00, EU:C:2001:495, paragraph 34); and of 10 November 2016, Baštová (C‑432/15, EU:C:2016:855, paragraph 37).

¹⁸ Judgment of 27 April 2023, Fluvius Antwerpen (C‑677/21, EU:C:2023:348, paragraph 31).

¹⁹ Judgment of 27 April 2023, Fluvius Antwerpen (C‑677/21, EU:C:2023:348, paragraphs 32 and 33).

²⁰ Unfortunately, that statement is repeated on numerous occasions in the case-law of the Court of Justice (see only judgments of 13 October 2022, Direktor na Direktsia Obzhalvane i danachno-osiguritelna Praktika (C‑1/21, EU:C:2022:788, paragraph 58); of 5 December 2017, M.A.S. and M.B. (C‑42/17, EU:C:2017:936, paragraph 31); and of 26 February 2013, Åkerberg Fransson (C‑617/10, EU:C:2013:105, paragraph 26), but it is incorrect, as the own resource based on gross national income (GNI) compensates for any expenditure not covered by traditional own resources and the VAT own resource. See only the EU Commission’s proposal for a Council Directive of 24 April 2019 amending Directive 2006/112 and Directive 2008/118 concerning the general arrangements for excise duty as regards defence effort within the Union framework, COM(2019) 192 final, page 10 – German version. However, for indeterminable reasons, this incorrect textual formulation is repeatedly used by the Court of Justice.

²¹ That appears to be the purport of the statement in the judgment of 10 November 2016, Baštová (C‑432/15, EU:C:2016:855, paragraph 38), according to which ‘the term “supply of services” is objective in nature and applies without regard to the purpose or results of the transactions concerned’.

²² Judgments of 4 July 2024, Credidam (C‑179/23, EU:C:2024:571, paragraph 40), and of 27 April 2023, Fluvius Antwerpen (C‑677/21, EU:C:2023:348, paragraph 32). To that effect, see also the judgment of 21 January 2021, UCMR – ADA (C‑501/19, EU:C:2021:50, paragraphs 36 and 37).

²³ To that effect, see also the judgments of 20 January 2022, Apcoa Parking Danmark (C‑90/20, EU:C:2022:37, paragraph 37 et seq.), and of 27 April 2023, Fluvius Antwerpen (C‑677/21, EU:C:2023:348, paragraph 30 et seq.).

²⁴ Judgment of 10 November 2016, Baštová (C‑432/15, EU:C:2016:855).

²⁵ Judgment of 3 March 1994, Tolsma (C‑16/93, EU:C:1994:80).

²⁶ Judgment of 3 March 1994, Tolsma (C‑16/93, EU:C:1994:80, paragraph 17).

²⁷ Judgment of 3 March 1994, Tolsma (C‑16/93, EU:C:1994:80, paragraph 19).

²⁸ On that point and on admissibility from the point of view of EU law, see my Opinion in P(Wrongly invoiced VAT to final consumers II) (C‑794/23, EU:C:2024:1049, point 42 et seq.).

²⁹ Judgment of 10 November 2016, Baštová (C‑432/15, EU:C:2016:855, paragraph 36).

³⁰ Judgment of 10 November 2016, Baštová (C‑432/15, EU:C:2016:855, paragraph 39).