Supreme Court: same wage for same work in Prague and elsewhere

The Supreme Court (SC) ruled that a driver working in the regional town of Olomouc is entitled to the same wage as a driver working for the same employer and at the same position in Prague. According to the SC, external social and economic…

Is it possible to correct tax base for claims not lodged in insolvency proceedings?

In Case C-146/19, the Court of Justice of the EU (CJEU) held that a creditor may adjust the VAT base for a claim not lodged in insolvency proceedings if they prove that the claim would have been irrecoverable even if it had been lodged in…

Italian Supreme Court applying beneficial ownership and abuse of right

In its July judgement, the Italian Supreme Court applied the principles formulated by the Court of Justice of the EU (CJEU) in the Danish cases clarifying certain preconditions for applying an exemption from withholding tax under the EU directive on…

CJEU: Services associated with both taxable and exempt supplies may not be partially…

In the BlackRock Investment Management (UK) Ltd (C-231/19) case, the Court of Justice of the EU (CJEU) ruled on whether it is possible to treat a service provided via an IT platform used for both exempt and taxable supplies as a supply exempt from…

SAC: Special regulation of period for assessing tax overrides general regulation

The Supreme Administrative Court dealt with the relationship between the general regulation of the period for assessing tax under the Tax Procedure Code and the special regulation of the period under the Income Tax Act in respect of the commencement…

Compensation for unrealised service paid upon early contract termination subject to…

The Court of Justice of the EU (CJEU) held that the amount paid by customers upon early terminations of contracts should be considered part of the price for services and thus subject to VAT. The CJEU based its judgment primarily on the recent…

CJEU: Member states not obliged to act in concert

Transportation of goods sold to another member state in form of distance selling can be considered effected by the supplier or on its behalf also when the transport agreement with the carrier is concluded by the customer and the supplier plays an…

Pitfalls of managing transfer prices by means of marketing services

The Municipal Court in Prague confirmed the tax administrator’s approach reclassifying marketing services contracted and provided to abroad to ‘consideration received from a third party’. In the court’s opinion, the services were rendered directly…

CJEU: supply recipient must correct a tax deduction even though the supplier did not…

The Court of Justice of the EU (CJEU) has answered the prejudicial questions concerning a Romanian company that corrected a previously claimed VAT deduction for just a part of the supplies received. In this respect, the CJEU held that national tax…

CJEU: interest on retained excess VAT deduction not to equal REPO rate

The Court of Justice of the EU (CJEU) answered a prejudicial question concerning a Hungarian company claiming interest on a retained excess VAT deduction from its local tax administrators. The CJEU held that the calculation and amount of such…

Who is liable to pay VAT upon imports – the declarant, or the goods‘ owner?

The Supreme Administrative Court (SAC) held that the customs declarant, i.e. the ‘regime holder’ is liable to pay tax upon the import of goods from a non-EU country. In the court’s opinion, by lodging the customs declaration, such an entity…

Refunding undisputed retained excess VAT deduction confirmed by CJEU

In a case involving a Czech entity, the Court of Justice of the EU (CJEU) confirmed that EU law does not preclude refunding an undisputed portion of a retained excess VAT deduction, under certain conditions. This should also be reflected by an…