Tax & Legal Update
SAC: liability for unpaid VAT not to take precedence over denying an entitlement to…
The Supreme Administrative Court (SAC) in its recent judgement held that (customer’s) liability for VAT unpaid by the supplier does not universally take precedence over denying (the customer’s) entitlement to VAT deduction – which has undesirable…
SAC: difference between receivable’s nominal amount and purchase price may be…
According to the recent Supreme Administrative Court judgement, the difference between the nominal value of a receivable and its purchase price upon its transfer may be viewed as a factoring consideration, which is subject to value added tax.
New case law on offsetting
Offsetting is widely used in the business sphere to settle debts. By offsetting, a creditor’s and a debtor’s mutual debts of the same kind (usually monetary) cease to exist. The Supreme Court has recently issued two decisions bringing several…
CJEU on transport: excise duty regime not relevant
The Court of Justice of the EU (CJEU) in its December judgement (C-414/17) regarding Czech company AREX CZ dealt yet again with the issue of allocating transport in a chain of transactions. This time, it concerned fuel subject to excise duty and its…
Regional Court opposed to tax administrator’s approach to R&D allowance
The Regional Court of Justice in Hradec Králové in judgment No. 52 Af 18/2016 dealt with a case where a tax administrator challenged a research and development (R&D) allowance claimed by a taxpayer. The court in particular opined on the moment of…
Early termination penalty subject to VAT?
The Court of Justice of the EU (CJEU) in its judgement C-295/17 (MEO – Serviços de Comunicações e Multimédia SA) dealt with the question whether a fee received for early termination of a contract is subject to value added tax.
Brexit: time for a deal running short
Although the exit agreement between the United Kingdom and the EU is ready, it has not yet been ratified. The key vote in the British parliament lies ahead: if the deal is not passed, there will most likely be a no-deal Brexit. In this uncertain…
No deregulation for investment funds
In 2019, we expect further regulatory changes in the investment fund sector, mainly concerning reporting and stress testing. The European Securities and Markets Authority (ESMA) is now finalising guidelines on stress test scenarios for money market…
Uncertainty regarding electronic sick notes and waiting period (karenční doba)
Work on and approval of legislative changes to social security law have recently been reminiscent of Westerns. Whereas the cancellation of the waiting period (karenční doba) was passed by the Chamber of Deputies after years of discussion and…
What’s new in immigration law?
Discussions concerning immigration law have recently been fairly lively. While the Chamber of Deputies is currently deliberating an extensive amendment to the Act on Foreign Nationals’ Residence, in November, the Constitutional Court cancelled a…
Deputies pass GDPR-adapting act
In December of last year, the Chamber of Deputies passed a long-awaited bill on personal data processing, designed to replace the existing Act on Personal Data Protection. Its adoption follows the new rules set out in the EU General Data Protection…