Tax & Legal Update
ViDA: extension of OSS and introduction of single VAT registration
The VAT in the Digital Age (ViDA) proposal promises to modernise the VAT system across the European Union, aiming to increase EU tax revenue, digitalise reporting, defend against tax fraud more effectively, and move towards a definitive VAT system.…
CJEU: tax administrator may also refund wrongly charged VAT
The Court of Justice of the European Union (CJEU) ruled in Case C-453/22 that a taxpayer has the right to demand from a tax administrator a refund of VAT that a supplier has wrongly charged to the taxpayer and will not return due to the statute of…
SAC: Is it always possible to depreciate a movable item separately?
In judgment 8 Afs 229/2021-52, the Supreme Administrative Court (SAC) concluded that a technology such as a stationary power plant is a technical improvement to a building with which it forms a single functional unit and not a separate movable item.…
New EU rules: increased liability of payment service providers
The European Commission has published a proposal for the Directive on Payment Services in the Internal Market (PSD3) and a proposal for the Regulation on Payment Services (PSR). Their aim is to revise current legislation to reflect rapidly changing…
News in health insurance for foreigners
The last amendment to the Foreigners’ Residence Act has brought significant changes. Some of them, such as the abolition of the monopoly of the general health insurance company (VZP) have already taken place. What else has changed, and what will the…
Marketing services from VAT perspective
In its recent judgment, the Supreme Administrative Court (SAC) dealt with the question of whether a distribution of pharmaceuticals and marketing services constitute a single supply for VAT purposes.
SAC on proving conscious involvement in tax fraud in chain of supplies
The Supreme Administrative Court (SAC) has dealt with denying the right to deduct VAT to a company on the grounds of it being knowingly involved in VAT fraud. In its judgment, the court summarised the relevant case law for assessing VAT fraud.
Proposal for transfer pricing directive
The European Commission has published a proposal for a transfer pricing directive to unify procedures for the application of EU transfer pricing rules regarding the definition of related parties and the setting of arm’s length prices.
BEFIT: Another step towards uniform income taxation rules in EU
The European Commission has published its draft BEFIT (Business in Europe: Framework for Income Taxation) directive, which proposes a uniform approach to the taxation of large multinational groups in the EU and is the result of the EC's continuing…
Amendment to Labour Code effective: what are the changes?
Except for some provisions, the long-discussed amendment to the Labour Code entered into effect on 1 October 2023. The most significant changes concern workers under agreements to perform work and agreements to complete a job (agreements on work…
What to watch out for when making an international request for cooperation in tax…
In the course of tax proceedings, the tax administrator may want to obtain evidence beyond the borders of the Czech Republic. One way to proceed is via an international request for cooperation by which the domestic tax administrator asks a foreign…