The Effect of Mediation on Human Values
August 3, 2024
Lawyer’s Fee in the Case Condition Mediation Process (2020)
August 5, 2024
The “Decision Concerning the Amendment to the Decision Concerning the Determination of Value Added Tax Rates to be Applied to Goods and Services (Decision Number: 1594)” was published in the Official Gazette dated 02/10/2019 and numbered 30906, which reduced the VAT rate from 18% to 8% in some legal services.
In this context, in accordance with the Presidential Decree published in the Official Gazette dated 02/10/2019;
“Cases and affairs that fall within the jurisdiction of family courts, consumer courts and juvenile courts, guardianship cases and affairs; and legal remedies related to these cases; “VAT has been reduced from 18% to 8% for legal services provided within the scope of mediation and related enforcement proceedings as a condition of litigation in labor disputes.”
To explain this with an example in terms of mediation service as a condition of litigation in labor disputes specified in the law, if a person applied to a mediator within the scope of compulsory mediation before filing a labor lawsuit and the mediation negotiations were conducted by the applicant’s attorney; In this case, the VAT liability for the services provided by the lawyer is not 18%; It will be 8%.
While this situation provides an advantage for both the mediation institution, which serves to ensure social peace, and the tax liability of lawyers in terms of the attorney fees they will receive from their clients in return for the services they provide, and for citizens to access legal aid economically while seeking their rights; On the other hand, it has also been an incentive for both parties to reach a win-win outcome more quickly during the mediation process.
Undoubtedly; The contribution of lawyers during the mediation period is very valuable for us mediators. In this regard, the value added tax advantage provided by the legislator to lawyers in terms of attorney fees has been a development that will contribute to the development of the mediation institution and increase its sustainability.
