Tax & Legal Update
EET 2.0: financial administration’s position on contact payments
The EET 2.0 system, scheduled to be introduced in 2027, brings a new concept of “contact payment”. This plays a key role in determining which non-cash payments will be subject to the electronic sales reporting obligation and which will be excluded.…
Proposed amendment to VAT Act targets three key areas
The proposed amendment to the VAT Act, introduced in connection with EET 2.0, focuses on three main areas: irrecoverable receivables on the creditor’s side, unpaid liabilities on the debtor’s side, and changes to the VAT rate applicable to non…
Model contract to perform an office: Under what conditions can it be concluded?
A statutory body generally performs their duties for a company based on a contract for the performance of an office (smlouva o výkonu funkce). Unlike most private law contracts, this contract is subject to mandatory statutory requirements regarding…
Customs rules for small consignments to undergo major changes from 1 July 2026
A fundamental change is impending in the area of customs duties on low value consignments for end consumers. With effect from 1 July 2026, the European Union will abolish the existing customs duty exemption for small consignments with value of up to…
SAC: international hire of labour (IHOL) seen as possible indication of order by…
In its recent judgment, the Supreme Administrative Court (SAC) upheld the tax authority’s conclusion regarding the existence of control by the parent company, agreeing with the argument that the subsidiary’s management consisted predominantly of…
JMHZ: financial administration responds to ambiguities and practical questions
The financial administration has issued a communication concerning the reporting of exempt income from dependent activity and of the results of the year-end settlement of employment tax prepayments and tax credits.
SAC sides with taxpayer in appeal against VAT registration decision
In its recent ruling, the Supreme Administrative Court (SAC) stated that if an entrepreneur is unsure whether they meet the conditions for VAT registration, they may file an application for registration as a precautionary measure, pay the tax, and…
SAC on tax deductibility of expenses for lawyer’s lump-sum fee
The lump-sum nature of a lawyer’s fee does not in itself give rise to a different or less stringent standard of proof in tax proceedings, the Supreme Administrative Court (SAC) found in its judgment 3 Afs 262/2024–41. It also pointed out that…
Back to drinking after Dry February? Definitely not at work
Dry February is over, but not at work. There, abstinence continues regardless of the calendar – and it is not a voluntary challenge, but a rule laid down by law. What are the implications for employees and employers?
SAC: new judgments on substantive and temporal connection
In recent months, the Supreme Administrative Court (SAC) has issued several noteworthy rulings, all of which underline the importance of establishing a clear substantive and temporal connection between claimed expenses and the relevant taxable…
AIFMD II tightens rules for outsourcing. Standard funds will also feel impact
AIFMD II changes the rules for outsourcing and extends supervision over it, affecting not only the managers of qualifying investor funds and special funds but also the managers of standard funds. The amendment to the Act on Investment Companies and…
Digital Omnibus and GDPR: upcoming changes in personal data protection
The comprehensive digital package (known as the Digital Omnibus) presented by the European Commission in November 2025 focuses on changes to digital legislation in data protection and processing, cybersecurity and artificial intelligence. It should…