Case law

CJEU on gifts provided with magazine subscription

The Court of Justice of the European Union has ruled in the case of a Portuguese publisher that gifts provided with a magazine subscription constitute an ancillary supply accompanying the main supply. The gift must thus follow the tax treatment of…

SAC comments on VAT deduction on anti-radar and GPS logbooks

The Supreme Administrative Court upheld the tax administrator's opinion and disallowed the VAT deduction on the purchase of anti-radar equipment, as it was not used for economic activity and did not protect the taxpayer's property. The SAC also…

SAC: transfer of technical improvement after lease end regarded as service from VAT…

The Supreme Administrative Court (SAC) ruled on the question whether the transfer of technical improvements (carried out by a lessee at their own expense) to the lessor for compensation at the termination of the lease constitutes a service from the…

CJEU: tax administrator may also refund wrongly charged VAT

The Court of Justice of the European Union (CJEU) ruled in Case C-453/22 that a taxpayer has the right to demand from a tax administrator a refund of VAT that a supplier has wrongly charged to the taxpayer and will not return due to the statute of…

SAC: Is it always possible to depreciate a movable item separately?

In judgment 8 Afs 229/2021-52, the Supreme Administrative Court (SAC) concluded that a technology such as a stationary power plant is a technical improvement to a building with which it forms a single functional unit and not a separate movable item.…

Marketing services from VAT perspective

In its recent judgment, the Supreme Administrative Court (SAC) dealt with the question of whether a distribution of pharmaceuticals and marketing services constitute a single supply for VAT purposes.

SAC on proving conscious involvement in tax fraud in chain of supplies

The Supreme Administrative Court (SAC) has dealt with denying the right to deduct VAT to a company on the grounds of it being knowingly involved in VAT fraud. In its judgment, the court summarised the relevant case law for assessing VAT fraud.

Until when can additional tax return for lower tax be filed?

The extended chamber of the Supreme Administrative Court (SAC) has ended a long-standing dispute between the financial administration and taxpayers regarding the deadline for filing an additional tax return for lower tax. In doing so, the SAC sided…

SAC’s view on parent company orders

Any influencing of an uncontrolled transaction by a related party, usually a parent company, is regarded by the tax authorities as a parent company’s orders. This may be, e.g., a parent company ordering a subsidiary to sell goods to that…

Proving management services and legitimate expectations

In August, the Supreme Administrative Court closed a case concerning the tax deductibility of management services. It explained in detail the taxpayer's obligations when proving services and what the taxpayer can reasonably expect with respect to…

Abuse of rights in real estate leases and VAT

The Municipal Court in Prague ruled on the distinction between leases of real estate and accommodation services, and its implications for VAT treatment. The court concluded that the case in question involved an abuse of rights.

SAC: advertising services and the right to deduct VAT

In judgment 8 Afs 111/2022–36, the Supreme Administrative Court (SAC) assessed how far a taxpayer had discharged their burden of proof in a case involving received advertising services that were to be rendered within motorcycle races, among other…