Beware of high penalties when posting workers abroad

Although the European and Czech regulation of special rights of employees posted abroad is quite old, many employers are unaware of its existence or choose to ignore it arguing that no one will find out. With such ignorance, they are risking heavy…

SAC refuses right to deduct VAT on acquisition of movable assets after business…

The Supreme Administrative Court (SAC) rejected a cassation complaint filed by a taxpayer in a dispute concerning a refusal of the right to deduct VAT on an acquisition of movable assets followed by a purchase of a business establishment from the…

Blue Card – future of EU labour mobility

Projections show that by 2070, the European Union will have 292 million people of working age, compared to 333 million in 2016. This trend would mean a significant decline in the workforce for the EU member states. This is one of the reasons why the…

SAC comments on invoicing services containing tax non-deductible expenses

The Supreme Administrative Court (SAC) confirmed that tax non-deductible expenses cannot be treated as deductible solely on the grounds that the taxpayer invoiced them plus a profit mark-up to the parent company for the provision of services.

Changes in international taxation probably as early as 2023

The G20 has endorsed the framework changes to international taxation agreed at the OECD level (including non-member countries) on 8 October 2021. The changes are spread across two pillars containing rules for shifting taxing rights on profits from…

Unequal pay: Constitutional Court rejects Czech Post's complaint

You may remember the case of a Czech Post driver who objected to his pay not being the same as that of a colleague in Prague. The Constitutional Court has now sided with the Supreme Court's decision that external social and economic conditions, such…

Deputies do not approve digital tax

In the just-ended parliamentary term, the Czech Chamber of Deputies did not approve the bill on a digital service tax. Hence the bill would have to go through the entire legislative process again should the new government want to introduce a digital…

Court rejects possibility of increasing investment incentive tax credit through…

The Regional Court in Hradec Králové confirmed the tax administrator’s opinion that it is not possible to increase the insurmountable total of tax credits through discounting and thus effectively draw an investment incentive in a higher amount than…

When do penalties for additional tax returns arise? How to avoid them?

Generally, no penalty arises if the incorrectly paid tax is corrected in an additional tax return. Unfortunately, the amendment to the Tax Procedure Code effective from 1 January 2021 gives rise to situations where an additional tax return can lead…

Contributions to insurance company viewed as price reduction for VAT purposes

Judgment C-717/19 (Boehringer Ingelheim) dealt with a question of whether for VAT purposes, contributions paid to an insurance company for subsidised medicines constitute a reduction in the invoiced price. The Court of Justice of the European Union …

News in brief, November 2021

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

VAT on electricity and gas supplies to be waived

Based on Wednesday’s decision by the Minister of Finance, VAT on supplies of electricity and gas, their acquisition from another EU member state, and their imports is to be waived. The waiver shall apply to all supplies with the date of taxable…