SAC stands up for taxpayer over deducting costs of destroyed goods

The Supreme Administrative Court (SAC) upheld a taxpayer's cassation complaint in a dispute over the legitimacy of claiming costs/expenses for destroyed goods. According to the SAC, without informing the appellant the appellate body assessed the…

Intermediation in sale of extended warranties not to be excluded from coefficient…

The Court of Justice of the EU (CJEU) denied the full entitlement to VAT deduction to a company providing extended warranties during sales of goods. The sale of extended warranties may not be treated as a financial activity, ruled the court.

Lease of real estate via Airbnb considered business activity

The Municipal Court in Prague confirmed that the provision of short-term leases via Airbnb meets the criteria of a business activity. Consequently, income from this activity shall be included in a separate tax base as income from an independent…

Disposal costs of part of new assets’ input price?

With judgment No. 10 Afs 346/2020-43, the Supreme Administrative Court (SAC) has significantly contributed to clarifying when the costs of disposal of assets may be deducted from the tax base directly, and when they constitute investments and shall…

Tax and IT services for investment funds – exempted from VAT?

The Court of Justice of the European Union (CJEU) yet again dealt with the question of which services provided to collective investment undertakings can be exempted from VAT. In joined cases C58/20 and C59/20, the court outlined the conditions under…

Denying right to deduct VAT before entering bankruptcy compatible with EU directive?

The Court of Justice of the European Union (CJEU) has dealt with the refusal of the right to deduct VAT on taxable transactions carried out by a Romanian company before entering insolvency proceedings.

Constitutional Court more flexible on non-compete clauses in employment contracts

In May, the Constitutional Court dealt with the possibility of employers to withdraw from non-compete clauses. This court has a more liberal view of the matter than the Supreme Court which believes that an employer's withdrawal without giving a…

Limits to shareholder agreement validity regarding board member instructions

In Judgment No. 27 Cdo 1873/2019-336, the Supreme Court (SC) dealt with the validity of clauses in shareholder agreements, making a significant contribution to the abundant case law concerning the boundaries between business and strategic management.

Practical implications of the Supreme Court’s decision on determining the scope of…

Corporate law has been shaken up by Supreme Court Decision No. 27 Cdo 3549/2020 on the nullity of a corporation’s founding acts stipulating “production, trade and services not specified in Appendices 1 to 3 of the Trade Licensing Act” as its scope…

Mere rental of real property not a VAT fixed establishment

In case C-931/19 Titanium, the Court of Justice of the European Union (CJEU) ruled against the existence of a fixed establishment for VAT purposes solely on the grounds of renting real property without the presence of staff in the country where the…

CJEU on roaming services’ place of supply

In the case of SK Telecom Co. Ltd, No. C-593/19, the Court of Justice of the EU (CJEU) dealt with the determination of the place of supply for roaming services, following the rule of effective use and enjoyment.

CJEU on fuel cards once again

The Court of Justice of the European Union (CJEU) denied the right to deduct VAT on fuel to a taxable person who provided fuel cards to transport companies; the CJEU thus confirmed the conclusions formulated in judgment C-235/18 Vega International.