Tax & Legal Update
How quickly shall tax authorities refund overpayments or excess deductions?
Not only taxpayers but also tax administrators must comply with deadlines. What deadlines apply to the tax authority when refunding taxpayers? What can taxpayers do if the tax authority fails to meet the relevant deadline? Below we present an…
Labour Code amendment to increase administrative burden related to posting of workers
Another novelty brought by the upcoming amendment to the Labour Code (apart from remote work) is a significant extension of employers’ information obligation upon cross-border posting of workers. The changes respond to the EU Directive on…
Coordination Committee – treatment of donations to Ukraine remains unclear
In response to the war, the government promptly came up with an act on tax measures in connection with the armed conflict in the territory of Ukraine caused by the invasion of the troops of the Russian federation, setting the conditions for the tax…
Upcoming changes to Transformations Act
The first draft of the long-awaited amendment to the Act on Transformations has been published in the electronic library of the legislation in preparation and brings a number of significant changes. The bill implements EU directives amending EU…
Transport 2030 programme to support research and innovation in transportation
The government has approved a programme to support applied research and innovation in transport. The estimated budget of CZK 1.95 billion will be distributed via four calls over eight years.
Excise duties: EMCS system extended
An amendment to the Excise Duty Act implementing Council Directive (EU) 2020/262 enters into effect partly in October 2022 and fully from 13 February 2023. The directive aims to enhance harmonisation across member states, clarify the terms used, and…
Right to deduct where supplier has not paid output VAT
In case C-227/21 HA.EN. the Court of Justice of the European Union (CJEU) dealt with whether a supply recipient has the right to deduct VAT if they knew or should have known that the supplier was not going to pay output VAT because of financial…
When do structures come into existence or cease to exist in the legal sense? What…
In its recent judgment, the Supreme Administrative Court dealt with the question of when a structure comes into existence or ceases to exist as a thing in the legal sense (7 Afs 132/2022-22), which impacts the deductibility of tax expenses.
Upcoming legislative changes to agreements outside employment contracts
The Ministry of Labour and Social Affairs has submitted a long-awaited bill to amend the Labour Code, which is to implement two EU directives in Czech law. Among other things, the new regulation will affect the working conditions of employees…
Amendment to Labour Code introduces new home office rules
The Ministry of Labour and Social Affairs has published an eagerly awaited draft amendment to the Labour Code introducing several new changes, the most significant one being the comprehensive regulation of home office. A more detailed regulation of…
CJEU again on right to deduct VAT in context of holding companies
The Court of Justice of the European Union has ruled on whether a holding company is entitled to deduct VAT on inputs relating to services provided as a shareholder’s contribution.