Tax & Legal Update
New block exemptions for R&D and specialisation agreements in force since July
The European Commission has adopted revised horizontal block exemption regulations for research and development (R&D) and specialisation agreements, including related interpretation guidelines. The aim is not only to remove some ambiguities but also…
Can lessees claim deduction of import VAT?
The VAT Committee again considered the possibility for lessees to deduct import VAT if the lessee is also the person liable to pay import VAT. It reiterated that to exercise the right to deduct, it is necessary for the taxable person to have…
Ambitious customs legislation amendment coming soon
The most ambitious amendment to customs legislation since 1968 is heading to the MEPs. Prepared by the European Commission, it aims for EU customs to make full use of electronic data, and to significantly simplify customs procedures.
CJEU on adjustments of VAT deductions for written off goods
The Court of Justice of the European Union (CJEU) ruled on adjusting input VAT deductions for written off goods no longer usable due to wear and tear, defects, and obsolescence. The taxpayer defended not adjusting the VAT deduction for written off…
AI under control: European Parliament moves landmark regulation to trialogue
In mid-June, the European Parliament (EP) voted on its comments on the proposal for a regulation on artificial intelligence (AI), kick-starting trialogue negotiations. This brings the EU one step closer to adopting the world's first ever…
Transfer pricing perspective on business model changes
The Supreme Administrative Court (SAC) examined whether the tax administrator had correctly set the reference price of services provided between related parties following a change in the business model, and sided with the taxpayer.
Heated flavoured tobacco not available from October
The European Union and the Czech Republic are following the global trend to reduce the consumption of tabaco in their population. From 23 October 2023, it will no longer be possible to sell flavoured heated tobacco products, so very popular among…
Ministry of Labour and Social Affairs refrains from changing ‘Svarc system’…
The Ministry of Labour and Social Affairs wanted to fundamentally change the definition of illegal work, to facilitate its prosecution: the long-term character of the relationship would no longer be decisive for assessing it as illegal. However,…
Changes in conditions for holding an office in a corporation
An amendment to the Corporations Act came into effect on 1 July, introducing partial changes to the conditions for exercising an office as members of statutory bodies of corporations. The law now contains a closed list of obstacles to holding such…
Fundamental changes in rail passenger rights
On 7 June 2023, the revised EU regulation on rail passenger rights and obligations entered into effect. The new rules will affect everyone, especially passengers with disabilities, and passengers transferring to another route or transporting…
SAC on received intra-group services
In judgment 10 Afs 93/2021–69, the Supreme Administrative Court (SAC) ruled on the tax deductibility of costs (expenses) incurred by a company for services provided by the group. In the tax administrator’s opinion, the company failed to support what…