Case law
CJEU on adjustments of VAT deductions for written off goods
The Court of Justice of the European Union (CJEU) ruled on adjusting input VAT deductions for written off goods no longer usable due to wear and tear, defects, and obsolescence. The taxpayer defended not adjusting the VAT deduction for written off…
Transfer pricing perspective on business model changes
The Supreme Administrative Court (SAC) examined whether the tax administrator had correctly set the reference price of services provided between related parties following a change in the business model, and sided with the taxpayer.
CJEU on the VAT treatment of electricity supplies from charging stations
In its recent judgment, the Court of Justice of the European Union (CJEU) held that the charging of electric vehicles and the provision of related services constitute a complex transaction consisting of a supply of goods.
SAC on received intra-group services
In judgment 10 Afs 93/2021–69, the Supreme Administrative Court (SAC) ruled on the tax deductibility of costs (expenses) incurred by a company for services provided by the group. In the tax administrator’s opinion, the company failed to support what…
Application of reverse charge to supplies of movable items when providing…
The Supreme Administrative Court dealt with the correctness of applying the reverse charge regime to the modernisation of a dairy which also included supplies of movable items functionally related to the dairy. At the heart of the dispute was…
CJEU on the VAT treatment of real property sales
In judgment C-239/22, the Court of Justice of the EU (CJEU) specified that the criterion of ‘first occupation’ of immovable property means the first use of the property by its owner or tenant. The application of VAT to the sale of the property then…
SAC on calculation of reduction coefficient upon sale of land
The Supreme Administrative Court (SAC) dealt with a case in which a sale of land was excluded from the calculation of the reduction coefficient. The taxpayer had sold land that they considered and accounted for as fixed assets. The tax administrator…
Advertising services under scrutiny: recent case law
Reviewing the tax deductibility of advertising costs is still very popular with tax administrators during inspections. Below, we inform you about recent case law that could indicate what documents taxpayers should have on hand during an inspection…
SAC on VAT deduction: Who can dispose of goods as their owner?
The Supreme Administrative Court has ruled on a case concerning the purchase and subsequent sale of goods that remained in the warehouse of a supplier who had been duly authorised to resell them. The merit of the dispute was whether the taxpayer had…
What to watch out for when preparing documents to claim R&D allowance
Even though R&D-related legislation may appear unchanged, in 2023, tax administrators may no longer accept approaches applied in prior years. Last year’s case law showed that project objectives, documentation, and evaluation should be as specific as…
Regional Court on deductibility of interest on acquisition loan and abuse of law
In judgment 55 Af 4/2020–137, the Regional Court in Prague dealt with a company that claimed interest on a bank loan for the purchase of a share in a Czech company with which it was subsequently to merge by acquisition. The loan was provided by an…
Proving services provided by parent company and principle of legitimate expectation
In recent judgment No. 30 Af 57/2021-76, the Regional Court in Brno reminded us how important robust documentation of services is in defending the tax deductibility of expenses. The core of the dispute involved a taxpayer claiming in their income…