Tax & Legal Update
CJEU on application of tax rate for selected beverages
The VAT Directive does not prevent member states from applying a reduced rate to selected goods and services. One of the possible criteria for classifying goods into reduced rates is the customs nomenclature. Member states may use other…
SAC on interpretation of double tax treaties
When interpreting the text of an international treaty, it is necessary to follow primarily the general rules of interpretation, i.e., use linguistic, systematic, and teleological methods. The commentaries on the OECD Model Tax Convention can only be…
Consolidation package and the new Accounting Act
At the end of November 2023, President signed the consolidation package, which amends a total of 65 laws, including the Accounting Act. The partial amendment to the Accounting Act includes the possibility of using a functional currency in Czech…
Measuring fair value in times of change
In recent years, companies have needed to respond and adapt to major economic changes, such as mounting inflation and interest rates, geopolitical events, the rise of artificial intelligence and climate-related matters.
Digitisation of Schengen visas receives green light
On 13 November 2023, the Council of the EU adopted rules for the digitisation of processes related to the issuing of short-stay or Schengen visas. What changes will this bring?
Consumer credit: new obligations for providers and new rights for consumers
In October, the EU directive on credit agreements for consumers entered into force, replacing the previous directive from 2008. The need for new consumer credit legislation arose due to rapid technological developments and the ongoing digitisation…
Development of administrative practice in VAT treatment of fuel cards
The application of VAT on fuel cards has been a highly scrutinised topic. Fuel cards are often used by vehicle operators for refuelling. In September this year, the VAT Committee issued new guidance after re-visiting the EU Court of Justice's ruling…
Registration in central CBAM registry launched
The carbon tariff (CBAM Directive) is a much talked about topic, especially now at the turn of the year. The directive entered into force on 1 October 2023, starting the transitional period that ends at the end of 2025. The Czech Republic has…
Notification obligations for parties to mergers and procurement procedures
Until recently, EU state aid rules regulated only subsidies granted by EU member states. Subsidies from third countries were not regulated, which gave their recipients an advantage over other operators on the EU market. This is now to be prevented…
Tax administration principles: legality, legal licence, and self-restraint and…
In October's Tax and Legal Update we covered the basic principles of tax administration and why it pays to know them. Today we look in more detail at the principle of legality, the principle of legal licence, and the principle of self-restraint and…
Chamber of deputies approves long-term investment product
In its third reading, the chamber of deputies has approved a bill on the development of the financial market and the promotion of old-age security, which, among other things, introduces a long-term investment product as a new tax-efficient old-age…