VAT treatment of sub-participation agreements

The Court of Justice of the European Union (CJEU) has dealt with the question whether sub-participation agreements, whereby a creditor under a credit agreement (a lender) transfers the credit risk to a third party, are covered by the exemption from…

Amendment to VAT Act to increase limit for compulsory VAT registration

The limit for compulsory VAT registration should increase from CZK 1 million to CZK 2 million from 1 January 2023. This should particularly help small businesses adversely affected by the COVID-19 pandemic. The draft amendment contains other changes…

CJEU on right to deduct VAT upon entering liquidation

The Court of Justice of the European Union ruled on whether there is an obligation to correct the previously claimed VAT deduction on capital goods if a company enters into liquidation and applies for VAT deregistration.

Registration of beneficial owners: who exercises control?

Effective 1 October of this year, the Act on the Registration of Beneficial Owners has undergone fundamental changes. The legislators complied with the requirements of the European Commission and eliminated the deficiencies concerning the definition…

News in Brief, November 2022

Last month’s tax and legal news in a few sentences.

EU unifies chargers for phones, tablets, and laptops

From 2024, all phones and tablets sold in the EU will have to be equipped with a USB Type-C charging port. Two years later, the obligation will extend to laptops.

Compensation for connecting flight delays mandatory

The Court of Justice of the EU strengthened air passenger rights while highlighting the role of travel agents in ticket sales (C-436/21). Passengers will thus be entitled to compensation even for the delay of a connecting flight operated by a…

Definition of concern group for actions to set aside under insolvency act

The Business Corporations Act defines a group (a ‘concern’) as follows: one or more persons subject to single management by another person or persons form a concern group with that dominant person. However, the concept of a concern group is also…

Coordination Committee – treatment of donations to Ukraine remains unclear

In response to the war, the government promptly came up with an act on tax measures in connection with the armed conflict in the territory of Ukraine caused by the invasion of the troops of the Russian federation, setting the conditions for the tax…

When do structures come into existence or cease to exist in the legal sense? What…

In its recent judgment, the Supreme Administrative Court dealt with the question of when a structure comes into existence or ceases to exist as a thing in the legal sense (7 Afs 132/2022-22), which impacts the deductibility of tax expenses.

News in Brief, October 2022

Last month’s tax and legal news in a few sentences.

Right to deduct where supplier has not paid output VAT

In case C-227/21 HA.EN. the Court of Justice of the European Union (CJEU) dealt with whether a supply recipient has the right to deduct VAT if they knew or should have known that the supplier was not going to pay output VAT because of financial…