Tax & Legal Update

GFD Instruction D-59 from corporate income tax perspective

GFD Instruction D-59 replacing existing Instruction D-22 mainly brings clarifications resulting from the conclusions of available case law and coordination committees from recent years. Pertaining to corporate income tax, however, the instruction…

Companies can get support for employee education and training

The Operational Programme Employment+ has announced a call for employers who want to support their employees in education and training so that workers may adapt their skills to changes or a more suitable working environment. Enterprises based in…

CJEU: Is it necessary to pay VAT stated in tax document?

The Court of Justice of the European Union has refuted the Austrian court's belief that any person who indicates tax on a tax document is liable to pay that tax. If the service recipients are only end costumers not entitled to deduct VAT,…

CJEU challenges transaction benefiting from simplified procedure for triangular…

The Court of Justice of the EU ruled on the use of the simplified procedure for triangular transactions. If documents issued by the middle party under the scheme do not comply with the VAT Directive, the scheme cannot be used, according to the court.

Regulation on foreign subsidies: new obligations to affect mergers and public…

Until now, the EU has not had the instruments to prevent distortions of the EU market due to foreign subsidies or to prevent an unfair advantage for subsidised companies from third countries. This should change with new Regulation (EU) 2022/2560 of…

GFD publishes Q&As on DAC7

The document providing methodological guidance through questions and answers summarises the obligations of digital platform operators arising from the new reporting obligation relating to sellers and sales made through these platforms.

News in Brief, January 2023

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

New Accounting Act has clear outlines

The law promises to reduce the administrative burden and move accounting towards international standards. Together with implementing decrees, accounting standards, and a law amending related legislation including the Income Tax Act, the act should…

Horizon Europe programme for innovation development in enterprises

Horizon Europe is the research and innovation framework programme running from 2021 to 2027. It is the most important instrument for supporting research and innovation in Europe and worldwide. Successful projects will be entitled to the…

SAC on proving identity of customer from another member state

The Supreme Administrative Court (SAC) has referred a preliminary question to the Court of Justice of the EU whether it is possible to deny the right to VAT exemption of supplies of goods to another EU member state if the supply to a specific…

CJEU on the right to deduct VAT if supplier pretends to be another person

The Court of Justice of the European Union (CJEU) recently ruled that taxpayers involved in tax fraud shall be denied the right to deduct VAT in full, even if the loss of tax revenue (tax evasion) is lower.

Court agrees: bonds issued under commission agency agreement not to be included in…

The court agreed with our tax litigation team in a dispute concerning thin capitalisation rules. When applying the test, the economic substance of the credit relationship should be taken as a basis – the bonds issued for unrelated investors under a…