Tax liberation package extended to retail and provision of services in business premises

The Ministry of Finance adopted another tax liberation package, extending the waiver of road tax and income tax prepayments and VAT-related default interest to entrepreneurs operating in retail and the sale and provision of services that had to…

SAC defines difference between contract and foreign employees

The Supreme Administrative Court (SAC) has clarified the definition of a contract employee and a foreign employee as set out in the Sickness Insurance Act. The distinction between these two categories of employees working in the Czech Republic is…

Investment incentives: Possibility to extend the deadline for meeting general terms…

In record time, the chamber of deputies and the senate have passed a draft government amendment to the Act on Investment Incentives allowing support recipients affected by the coronavirus pandemic to apply for the extension of the deadline for…

Neither creditor nor debtor have to be VAT registered at the time of correcting tax…

Is it compatible with the VAT Directive that both creditor and debtor must be taxable persons for VAT purposes both when providing the supply and when correcting/reducing the taxable amount? The Court of Justice of the EU (CJEU) dealt with this…

SAC sanctions CZK 1 mil fine for ‘Svarc’ system

In its June 2020 judgement, the Supreme Administrative Court (SAC) dealt yet again with the ‘Svarc’ system. The court held that a CZK 1 mil fine for allowing illegal work had been rightly imposed by the Labour Inspection Office. The decision should…

DORA to enhance cyber resilience of financial institutions

The European Commission has released a proposal for the Digital Operational Resilience Act (DORA), laying down the requirements for the information and communication technology (ICT) security of financial institutions. Banks, stock exchanges,…

CJEU: Right to deduct VAT in full also for expenses benefiting a third party

In the Vos Aannemingen case (C-405/19), the Court of Justice of the European Union (CJEU) dealt with whether it is possible to deduct, in full, input VAT on expenditures that benefited a third party, and when such benefit shall be regarded as…

Record-breaking spam penalty

In August of this year, the Office for Personal Data Protection (the Office) imposed the highest fine to date for the repeated unsolicited sending of commercial communications (spam). The company selling second hand cars paid CZK 6 million.

Practical pitfalls of quick fixes

An amendment to the VAT Act implementing long-awaited changes to the intracommunity supply of goods (quick fixes) entered into effect on 1 September 2020. We may already comment on the first practical implications for taxpayers and on solutions to…

News in brief, November 2020

Last month’s tax and legal news in a few sentences.

Changes in occupational health services during state of emergency

The government has adopted an emergency measure on periodic and other health checks. As in the spring, the measure introduces the possibility to use (in specified cases) affidavits instead of initial health checks, or not to perform periodic health…

Brexit: What will happen to social security and health insurance in 2021?

The end of 2020 will also bring the end of the transition period under the Agreement on the Withdrawal of the UK from the EU. During the transition period between 1 February 2020 and 31 December 2020, the United Kingdom is being treated as if it…