Tax & Legal Update
Proving management services and legitimate expectations
In August, the Supreme Administrative Court closed a case concerning the tax deductibility of management services. It explained in detail the taxpayer's obligations when proving services and what the taxpayer can reasonably expect with respect to…
Proposed changes to consolidation package
The governing coalition has agreed on amendments to the bill on the consolidation of public budgets (consolidation package with planned effect from 1 January 2024). The bill has already passed its first reading in the chamber of deputies. Below, we…
VAT in Digital Age (ViDA): digital reporting and e-invoicing
The draft ViDA Directive modernises the indirect tax system across the European Union, aiming to increase EU tax revenues, digitalise reporting, defend against tax fraud more effectively, and move towards a definitive VAT system that will view cross…
Technical amendment to Act on Investment Companies and Investment Funds
At the beginning of August, the Ministry of Finance submitted to the government a draft amendment to the Act on Investment Companies and Investment Funds. The ministry thus responds to the requirements of capital market participants (changes…
Abuse of rights in real estate leases and VAT
The Municipal Court in Prague ruled on the distinction between leases of real estate and accommodation services, and its implications for VAT treatment. The court concluded that the case in question involved an abuse of rights.
New class action act – what will it look like?
The bill on collective proceedings is heading to the chamber of deputies. This is the umpteenth attempt to comply with the requirements of the EU directive on representative actions for the protection of the collective interests of consumers, which…
Single environmental opinion: small step towards more straightforward construction…
The permitting of projects under environmental regulations will soon be easier, which may also accelerate construction proceedings. These changes will come about through a single environmental opinion (jednotné enviromentální stanovisko, or JES).
DSA not just for big players
From 25 August 2023, large companies such as Google, Facebook, and LinkedIn must comply with new rules for handling illegal content and using targeted advertising. The rules are part of the EU's Digital Services Regulation known as the Digital…
GDPR: personal data can again flow freely from EU to US
In July, the European Commission adopted a key decision establishing the EU-US Data Privacy Framework. Its main aim is to ensure that personal data flowing into the US are protected in a way that is comparable to that guaranteed by EU countries. The…
CJEU issues another judgment on fixed establishments for VAT purposes
The Court of Justice of the European Union (CJEU) has held that where a customer receives services based on an exclusive contract for the provision of services in a state other than the state in which their business is located, the resources of the…
Subsidies for large enterprises: what to expect
So far, 2023 has not been as rich in subsidy programmes for large enterprises as previous years. By the end of the year, however, several interesting calls also available to large enterprises will be announced. Below is an overview.