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Federal court suspends VAT registration rule for lawyers

A three-judge panel has blocked enforcement of a directive requiring lawyers to register for value-added tax, ruling that the legal challenge can proceed without a financial bond.

Federal judges have suspended a directive that would require lawyers to register for value-added tax (VAT). The three-judge panel ruled that more than 190 lawyers challenging the measure do not need to post a financial bond to proceed with their case. The court found that suspending the directive without requiring security would cause no tangible harm to the federal government. The ruling came after the Federal Supreme Court sent the case back to the High Court to decide on the bond requirement.

The suspension of the VAT registration directive means lawyers can continue their legal challenge without having to provide financial security upfront. This removes a potential barrier that could have delayed or complicated their ability to contest the measure in court.