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…

Existence of a subsidiary not necessarily constituting a VAT fixed establishment

The Court of Justice of the EU held that the mere existence of a subsidiary does not constitute a fixed establishment for VAT purposes, and that third parties are not required to examine contractual relationships between a parent and a subsidiary.

SAC: chaining of tax losses inadmissible

The Supreme Administrative Court (SAC) has dealt with whether it is lawful to repeatedly extend the deadline for assessing tax, which in the event of repeatedly incurred losses, might never end. The SAC held (8 Afs 58/2019-48) that such a ‘chaining’…

Constitutional Court deals with exchange rates upon acquisition of securities

The Constitutional Court (CC) dealt with a taxpayer’s complaint regarding the conversion (to Czech currency) of the acquisition cost of securities whose sale took place in a different taxable period than the acquisition. The CC confirmed the…

CJEU dealt with assigning of transport in a Czech case

In a Czech case (Herst), the Court of Justice of the EU (CJEU) dealt with assigning intra-Community transport to a transaction in a situation where transportation was arranged by the last entity in a chain, and goods were purchased and resold…

Posting of workers from a VAT perspective

In practice, companies often do not pay enough attention to the possible implications of posting high-ranking managers to the Czech Republic to manage or supervise another group entity. A number of these arrangements meet the definition of a VAT…

CJEU on consumer credit information

In its judgement in case C66/19, the Court of Justice of the EU (CJEU) held that it was unacceptable for a credit agreement to provide obligatory information merely by referring to a provision of national law that itself refers to other legislative…

SAC: proof of tax fraud not sufficient to deny entitlement to VAT deduction

Yet again, the Supreme Administrative Court (SAC) has dealt with a VAT fraud issue, in particular debating under what circumstances it may be concluded that a taxable supply recipient was or should and could have been aware of their involvement in…