Tax & Legal Update
Is it possible to maintain right to deduct even in chain fraud?
The Supreme Administrative Court in a recent judgment dealt with the right to deduct tax on a supply provided within a fraudulent chain of transactions. The tax administrator did not fully prove that the taxpayer knew, or could have known, that the…
Fuel card market to change significantly?
The application of VAT on fuel cards is a much debated topic among the professional public, mainly due to the lack of relevant legislation. The EC's VAT Committee has issued a working paper which rather surprisingly does not entirely conform to the…
Caution above all: pending litigation clauses in share transfer agreements
Agreements on the transfer of a share in a business corporation quite often contain clauses on pending court disputes and possible future debts of the company being purchased. In such cases, the arrangement may be that the debt shall be paid by the…
Compensation for energy costs for large businesses: applications to be accepted from…
On 2 November 2022, the Ministry of Industry and Trade published the first call for large businesses to apply for aid with respect to increased gas and electricity costs under the European Commission's Temporary Crisis Framework (TCF). Applications…
Deputies pass windfall tax
The chamber of deputies today have approved the introduction of a tax on windfall profits for 2023 to 2025, in the form of a bill submitted by the Minister of Finance. All amending proposals were withdrawn or rejected.
EU to increase state support for businesses hit by energy crisis
The European Commission has extended the Temporary Crisis Framework allowing direct subsidies or other forms of state aid for businesses affected by the energy crisis to mitigate the negative economic impact.
Compensation for energy costs for businesses: basic parameters
The expected aid for companies facing increased natural gas and electricity costs due to extraordinary energy price increases is imminent. The government has specified the terms of the programme with an expected allocation of up to CZK 30 billion…
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.
Appeals proceedings: How long may it take?
The tax authority has assessed you with additional tax. You disagree and therefore decide to file an appeal, hoping to get a remedy soon. How long will it take for the appellate authority to examine the case? Are there any deadlines that the…
Windfall tax’s final stages: bill to be debated in Parliament
Parliamentary deputies are currently discussing the proposal to introduce a tax on windfall profits (windfall tax) for selected taxpayers in the fossil fuel and energy sectors and for banks. The tax should apply between 2023 and 2025. Excess profits…
Temporary protection extended by one year
In response to the war in Ukraine, the EU member states adopted a coordinated approach to refugee protection and enshrined temporary protection status in their national legislations. Under Czech regulations, temporary protection provides its holders…