VAT in Digital Age (ViDA): digital reporting and e-invoicing

The draft ViDA Directive modernises the indirect tax system across the European Union, aiming to increase EU tax revenues, digitalise reporting, defend against tax fraud more effectively, and move towards a definitive VAT system that will view cross…

VAT treatment of unauthorised electricity consumption

In Case C-677/21 Fluvius Antwerpen, the Court of Justice of the European Union (CJEU) ruled on whether a supply of electricity that is unvoluntary and a result of a third party’s unlawful conduct constitutes a taxable supply of electricity carried…

Consolidation package may negatively affect VAT on lease and resale of cars above set limit

The government's consolidation package limits the right to deduct VAT for passenger vehicles in category M1 with a purchase price of over CZK 2 million. This will have a negative impact on the lease of passenger cars with a purchase price above the…

SAC: advertising services and the right to deduct VAT

In judgment 8 Afs 111/2022–36, the Supreme Administrative Court (SAC) assessed how far a taxpayer had discharged their burden of proof in a case involving received advertising services that were to be rendered within motorcycle races, among other…

Coordination Committee clarifies changes to VAT Act for real estate

The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors of the Czech Republic has dealt with changes to the VAT Act in connection with new construction regulations. The changes will be effective from 1 January…

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.

Italy: platform use in exchange for user data is barter; VAT base is the data’s value

The Italian tax administration has assessed additional output VAT to a platform on which users can register and use it free of charge. According to the tax administrator, this involves the provision of services for consideration, more precisely…

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…

Supply of energies at capped prices: clarification of VAT treatment

Compensation for the supply of electricity and gas at capped prices constitutes a consideration received from a third party, on which the electricity or gas suppliers must pay VAT. The Ministry of Finance expressed this opinion following the…

Any progress with VAT system digitisation?

The draft amendment to the VAT Directive which has already undergone the first public comment procedure, aims to digitise the value added tax system and establish a legal framework to level the business environment across EU member states.

Energy price capping: compensation subject to VAT?

In February, the government approved an amendment to the government decree on compensation paid to suppliers for the delivery of electricity and gas at fixed prices, which was supposed to clarify whether this compensation is subject to VAT. The…

CJEU on the right to deduct VAT if supplier pretends to be another person

The Court of Justice of the European Union (CJEU) recently ruled that taxpayers involved in tax fraud shall be denied the right to deduct VAT in full, even if the loss of tax revenue (tax evasion) is lower.