Case law
SAC rules on right to deduct VAT on fixed service fee
According to the Supreme Administrative Court (SAC), it is possible to claim a VAT deduction also for received services that were invoiced at a fixed monthly fee. The fact that the fee was agreed in this manner is not a fundamental obstacle to…
CJEU on VAT treatment of Czech ‘society’ without legal personality
The Advocate General of the Court of Justice of the European Union (CJEU) has issued an opinion on case C-796/23 Česká síť s.r.o, focusing on determining the taxable person who performed the supply and is liable to pay value added tax in the context…
How to correctly treat building land from VAT perspective
The issue of VAT on the sale of real estate, especially land, often causes confusion and leads to different interpretations. A recent ruling by the Supreme Administrative Court (SAC) provides guidance on how to determine whether the sale of land is…
SC: Share ownership dispute has no place in proceedings to redeem (reestablish)…
The Supreme Court has clearly defined the limits of the procedure to redeem (reestablish) lost or destroyed shares in court. If a dispute over ownership arises, the court may not decide who owns the shares in these proceedings. Lost or destroyed…
CJEU: Romanian windfall tax compatible with EU law
The CJEU has confirmed that the Romanian windfall tax imposed on renewable energy producers between November 2021 and March 2022 is not contrary to the rules governing the functioning of the European energy market and climate targets as defined by…
SAC: application of double tax treaty to sale of domestic real estate business share
The Supreme Administrative Court (SAC) ruled that a Cypriot company’s income from the sale of a business share in a Czech company whose value consisted in more than 90 percent of real estate is subject to taxation in the Czech Republic.
SAC rules on tax non-deductibility of interest on intra-group financing
In its August 2025 judgement, the Supreme Administrative Court (SAC) revisited the non-deductibility of interest expenses on a loan that arose in the context of a corporate group's internal restructuring. The court assessed the taxation of interest…
SAC: tax treatment of non-deductible expenses does not change by including them in…
The Supreme Administrative Court (SAC) has recently addressed again the tax deductibility of expenses, in particular dealing with a section of the Income Tax Act allowing non-deductible expenses (e.g. entertainment expenses) to be treated as…
VAT implications of transfer pricing adjustments
The CJEU has confirmed that amounts invoiced for services between related companies calculated according to the OECD methodology are subject to VAT. If a parent company provides services to a subsidiary that are linked to its operating profit margin…
CJEU agrees with VAT payer claiming tax exemption
The Court of Justice of the European Union (CJEU) has ruled that the tax exemption for exports of goods can also be applied to supplies of goods originally intended for the supply to another member state, as long as the conditions for exemption of…
Emails need not be signed with guaranteed electronic signature
Is it necessary for emails to bear a guaranteed electronic signature or is it sufficient if only an attached submission bears such a signature? The Constitutional Court opted for the latter and thereby further relaxed the rules of electronic…
Contractual autonomy: Can expert determine discount on purchase price?
Can contracting parties agree that a discount on a purchase price shall be determined by an expert? This question was recently addressed by the Supreme Court of the Czech Republic. In the article below, read how the court ruled and what it means for…