Tax & Legal Update
Third call for applications under Energy Saving programme announced
On 1 November 2017, the Ministry of Industry and Trade announced a third call to participate in the Energy Saving programme. The programme focuses on the support of measures aiming to reduce energy consumption leading to the overall improvement of…
Stricter rules for VAT exemption of transport connected with exportation of goods
The EU Court of Justice’s judgment of 29 June 2017 tightens conditions for the exemption from VAT of transport services connected with the exportation of goods outside the EU.
Binding rulings for permanent establishments
From 1 January 2018, taxpayers may ask tax administrators for binding rulings on the manner of determining the tax base of a permanent establishment (or a registered branch of a foreign entity) located in the Czech Republic.
Country-by-country reporting’s most common first-phase errors
In 2017, we repeatedly discussed the amendment to the Act on International Cooperation in Tax Administration introducing country-by-country reporting – CbCR. 31 October 2017 was an important date of the first phase of CbCR.
Top eight tax news items for employers and employees in 2018
The maximum assessment base for social insurance and the minimum wage will increase, which will affect the amount of some other mandatory payments and tax credits. Employees will also be allowed to complete their statements of payroll tax…
Proving inter-company services and determining transfer prices
Almost all multinational groups of companies ensure part of their activities on a central basis and re-invoice shared services to group companies. This often involves significant amounts. It is therefore not surprising that tax administrators have…
Re-invoicing excluding VAT? Only when no ancillary supply is involved
The Supreme Administrative Court (SAC) recently agreed with the tax administrator that the re-invoicing of accident insurance is a supply ancillary to the lease of a motor vehicle and, consequently, should be liable to the same VAT regime as the…
SAC: Tax deductibility of expenses requires providing evidence about real supplier
In its two recent decisions, the Supreme Administrative Court (SAC) again concluded that legal entities claiming tax deductible expenses must document and prove circumstances under which these expenses were incurred, as well as provide information…
CJEU: Leases with option to purchase considered delivery of goods?
There are various forms of leases from a tax perspective. For VAT, the crucial question is whether, after the end of the lease term, the ownership title to a leased asset is automatically transferred from the lessor to the lessee. If this is the…
SAC: Tax administrator’s authority to register taxpayers for VAT subject to time…
In its decision 10 Afs 329/2016-55, the Supreme Administrative Court (SAC) confirmed that the tax administrator’s authority to register persons liable to tax as VAT payers by virtue of office is not time-unlimited, similarly as any other…
ECOFIN meeting: Taxation of digital economy and definitive VAT system
The main tax issues discussed at the Economic and Financial Affairs Council’s October meeting were the taxation of the digital economy and the implementation of a definitive VAT system. The ECOFIN approved a draft directive implementing a new system…
When to expect definitive VAT system for EU?
A long-awaited draft amendment to the VAT Directive, intended to specify the outlines of the definitive VAT system for intra-EU supplies of goods, was published by the European Commission on 4 October 2017.