Advocate General Nilo Jääskinen of the European Court of Justice (ECJ) has issued his opinion in European Commission v France. In his view, France is in breach of articles 96 and 98 of the EU VAT directive for allowing a reduced rate for services provided by lawyers. These services are for legal aid which France argues is in line with article 98 that allows for a reduced rate for works of social welfare.
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The new guidance is not meant to reflect a substantial change to UK law, but the requirement that tax advice is ‘likely to be correct’ imposes unrealistic expectations
China and a clutch of EU nations have voiced dissent after Estonia shot down the US side-by-side deal; in other news, HMRC has awarded companies contracts to help close the tax gap