The VAT obligation for tax advisory services arises at the moment of issuing the invoice
Tax advisory services should be treated as the provision of permanent legal services and the tax obligation arises at the moment of issuing the invoice, according to the ruling of the WSA in Łódź of 13 July 2023 (ref. I SA/Łd 392/23).
The company, whose case was heard, is active in the field of tax consultancy and provides services in the field of representing its clients before public administration bodies and courts (legal representation). According to the company, these are permanent legal services, where the VAT obligation arises at the moment of issuing the invoice.
The tax authority disagreed with this position, holding that only for the service of legal representation does the tax obligation arise on the date of issuing the invoice, while in the case of the service of counselling and the service composed of counselling and legal representation, the tax obligation arises in accordance with the principle applied for continuous services, i.e. with the end of each settlement period. The case therefore went to court.
– The Łódź WSA agreed with the taxpayer. According to the court, every continuous legal service will be a continuous service, but not every continuous service will be a continuous legal service. All services performed by the company in the case under review are continuous legal services, for which the tax obligation arises at the time of issuing the invoice, explains Anna Rejman, a consultant at Thedy & Partners.