Tax & Legal Update
E-vignettes coming into force in the Czech Republic
Mid-August, the Senate passed a bill introducing e-vignettes in the Czech Republic from 2021. Drivers will thus be able to pay for the use of some roads online or via a mobile application. Payments linked to a car’s registration number will be…
Clearer outline of tax on selected digital services
The Ministry of Finance has prepared a digital service tax bill, proposing a tax rate of 7% on selected digital services. Entities liable to this tax will be companies included in corporate groups having a worldwide turnover of more than EUR 750…
Cross-border transaction reporting duty is heading to Chamber of Deputies
An amendment to tax legislation for 2020, also covering the implementation of DAC 6, is heading to the Chamber of Deputies. It introduces a new information duty regarding cross-border arrangements. The latest draft amendment includes new changes…
Quick fix revolution at hand. What will affect companies the most?
In a couple of months, intra-community supplies will undergo radical changes to the VAT regime, probably the most significant ones in recent history. The mechanism of applying VAT on consignment (call-off) stock arrangements will change entirely:…
Stricter rules for investment incentives in effect
An amendment to the Act on Investment Incentives has been promulgated in the Collection of Laws and will enter into effect on 6 September 2019. According to the amendment, projects will be subject to governmental approval. Without it, investment…
Time period for providing additional information to a tax refund application not a…
The Court of Justice of the EU (CJEU) ruled in the case of Sea Chefs Cruise Services GmbH (C-133/18) that the one-month period to provide additional information to an application for tax refunds is not a limitation (lapse) period. What does this…
Supervisory board member a taxable person for VAT purposes
Last month, the Court of Justice of the European Union (CJEU) dealt with the question whether a member of a foundation’s supervisory board is a taxable person for VAT purposes. In the case in question, the supervisory board member did not act in…
Passengers entitled to compensation also for delays of flights operated by a non-EU…
Mid July 2019, the Court of Justice of the EU (CJEU) dealt with the issue of claiming compensation for a significant delay of a flight operated by a non-EU carrier. When two connecting flights are booked by a single reservation with an EU-based…
Court explains the treatment of tax (non-) deductible expenses before 2015
The Municipal Court in Prague recently (10Af 60/2018 - 46-53) dealt with the applicability of Section 24(2)(zc) of the Income Tax Act as amended effective 1 January 2015 to taxable periods before 2015.
Interest on retained excess deductions after 1 January 2015 – part one
The issue of compensation for unreasonably long examinations of excess deductions has again been raised with the Supreme Administrative Court. This time the court discussed the amount of interest for the period after 1 January 2015 when a 1%…
Personal Data Protection Office imposes first fines for GDPR breaches
With the adoption of the General Data Protection Regulation (GDPR) has come considerable uncertainty among personal data controllers and processors as to the amount of penalties to be imposed by the Personal Data Protection Office for its breaches.…