VAT on Commercial Court fees
My attorney filed a case worth millions of dollars. The fee was assessed as per the attorney’s invoice at 2%. However, in the invoice, there is a component of VAT. Does VAT apply on fees paid into Court?
12 August 2013
No, VAT should not apply. Also, the 2% on filing at the Commercial Court is capped at TZS 10M. Since in your case you claim is in the millions of dollars, the maximum fee you will have to pay is TZS 10M, and not 2% of the amount in dispute. We recommend you relook at the calculations as you will be overpaying according to the invoice. You can also demand from your attorney a receipt of the official fees he or she paid into Court will likely give you a correct assessment.