Tax & Legal Update

Amendment to VAT Act to narrow scope of exempt financial activities

The Ministry of Finance is proposing to significantly narrow the scope of financial activities exempt from VAT in a forthcoming amendment to the VAT Act. The aim is to align the Czech VAT Act with the EU Directive and the interpretations of the…

ViDA - digital reporting and e-invoicing still music of the future

The proposal for a VAT in the Digital Age (ViDA) Directive that would modernise and advance the EU’s single VAT system is running behind schedule. The proposal did not move forward during the Spanish Presidency of the Council of the EU, but in the…

New OECD report on Pillar One – Amount B

The OECD’s Pillar I and Pillar II initiatives to reform international taxation aim to address tax challenges arising from the digitisation of the economy and ensure a fairer distribution of profits and taxing rights among countries in the globalised…

New case law on proving direct link between expense and income

Recent case law has again confirmed how difficult it can be to apply a special provision of the Income Tax Act allowing non-deductible expenses to be considered deductible up to the amount of the related income or income to be considered non-taxable…

Anti-trust office wants access to location data

The Office for the Protection of Competition is proposing several changes to competition law that would significantly strengthen its powers in detecting and punishing cartel agreements. Access to telephone location data, random and preventive…

Tax labyrinth of employee benefits - most discussed topics

Below, we summarise the problematic areas discussed during our January seminar focused on employee benefits and meals from 1 January 2024. Most questions were related to topics causing difficulties for employers in practice.

Principles of tax administration: free evaluation of evidence and legitimate…

Tax proceedings usually involve a large amount of evidence: some is provided by the taxpayer, other by the tax authority. It is on the tax authority to assess the evidence and evaluate its relevance and significance. But can it do so in an arbitrary…

How to apply VAT on selected passenger cars in 2024?

In mid-January, the General Financial Directorate (GFD) issued two information pieces on the practical application of changes to VAT from 2024. In this article, we focus on the Information on the VAT Deduction for Passenger Cars with a Purchase…

Practical information on changes to VAT rates

In mid-January, the General Financial Directorate (GFD) issued two pieces of information on the practical application of changes to VAT from 2024. In this article, we focus on the Information on VAT Rate Changes. Another piece, the GDF’s Information…

SAC on actual supplier of gas on virtual trading point

The Supreme Administrative Court (SAC) has dealt with a case of determining a gas supplier when trading in this commodity on a virtual trading point in Germany. The SAC confirmed that the supplier was the person that declared themselves as the…

Constitutional Court on concurrence of executive service agreement and employment…

The Constitutional Court confirmed that a management contract should be treated as an amendment to an executive service agreement subject to approval by the general meeting. If not approved, a usual remuneration shall be payable for the performance…

SAC’s landmark verdict on deadline for assessing tax

The extended chamber of the Supreme Administrative Court (SAC) has dealt with the conflict between the new and old legal regulation of tax assessment deadlines. The SAC opposes existing case law according to which the 10-year time limit for tax…