Tax & Legal Update
2019 amendment to VAT Act: first four biggest changes
The amendment to the VAT Act has passed through its comment procedure and is about to be submitted to the Chamber of Deputies. Below we present the first four most significant changes.
Changes to 2019 tax package: corporate income tax
The proposed amendment to the Income Tax Act has passed through external comments and is now available in the government’s public electronic library, with some fundamental changes to its wording compared with the previous version.
CJEU again ruled on transport in chains of transactions
In its February decision (C-628/16), the Court of Justice of the European Union (CJEU) again dealt with how to attribute transport or dispatch to two successive intra-community supplies. According to the CJEU, transport may not be ascribed to the…
End of never-ending story on concurrence of offices?
Czech judiciary again dealt with the (un)acceptability of the concurrence of offices, i.e. whether members of a corporation’s statutory body may at the same time perform activities for the same company under an employment relationship. This time,…
CJEU: deduction of VAT on input must be allowed upon assessment of additional VAT on…
Recently, the Court of Justice of the European Union (CJEU) dealt with two interesting and in principle similar cases that both involve the rectification of incorrectly declared supply in terms of VAT. Whereas national courts denied the customer’s…
Dependent agent permanent establishment
The Regional Court in České Budejovice held that if an agent’s activity forms a separate and essential part of a non-resident taxpayer’s activity, it gives rise to the taxpayer’s permanent establishment in the Czech Republic. The activity does not…
Substance-over-form rule not applicable to research and development allowances
In its judgement No. 3Afs 304/2016 – 37, the Supreme Administrative Court (SAC) confirmed once again that compliance with formal essentials stipulated by the Income Tax Act is a prerequisite for claiming research and development allowances. If…
Burden of proof for shortages ascertained
In its judgment No. 1 Afs 327/2017, the Supreme Administrative Court (SAC) dealt with an additional assessment of value added tax on shortages recognised during stock takings. The judgement provides insight into how shortages are viewed by the Czech…
Crowdfunding under regulator’s scrutiny
The proposal for a regulation on crowdfunding platforms in the EU is currently subject to a comment procedure. Such platforms allow the public to invest in projects using relatively small amounts of funds, while the final collected sum may amount to…
Scent trademarks and other news
A major amendment to the Act on Trademarks is currently being debated, with the planned effective date on 1 January 2019. If passed, the amendment will fundamentally change the system of registering trademarks in the Czech Republic. The amendment…
First three days of sick leave paid again?
Under presently applicable legislation, employees are not entitled to wage compensation for the first three days of temporary inability to work. This practice, referred to as ‘karencni doba’, or a ‘waiting period’ was introduced in 2008 by Mirek…