Tax & Legal Update
New blockchain framework for capital markets
Blockchain, or distributed decentralised database technology, is currently finding increased use in many areas of law and business. Capital markets are no exception, and one of the most interesting developments is the introduction of a pilot regime…
Minimum tax: current OECD and Czech developments
In July, the OECD published details on the content of the top-up tax information return, and additions to the administrative guidance. The Czech Ministry of Finance then published the outcome of the comments filed during the comment procedure and…
Changes to rules for issuing Blue Cards
Effective 1 July 2023, significant changes have been made to the Act on the Residence of Foreign Nationals. The amendment primarily implements the EU Blue Card Directive and reflects some operational requirements. Any changes simplifying the…
Changes in competition law: anti-trust office may use police wiretaps
On 29 July 2023, an amendment to the Act on the Protection of Competition entered into effect, significantly strengthening the powers of the Czech anti-trust authority, the Office for the Protection of Competition. Among other things, it provides…
SAC: advertising services and the right to deduct VAT
In judgment 8 Afs 111/2022–36, the Supreme Administrative Court (SAC) assessed how far a taxpayer had discharged their burden of proof in a case involving received advertising services that were to be rendered within motorcycle races, among other…
Coordination Committee clarifies changes to VAT Act for real estate
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors of the Czech Republic has dealt with changes to the VAT Act in connection with new construction regulations. The changes will be effective from 1 January…
Strengthening cybersecurity: new law to tighten rules for Czech companies
The bill submitted by the National Cyber and Information Security Agency (NCISA) sets new obligations in cyber security arising from the NIS 2 Directive. A conservative estimate is that the number of entities affected by the new obligations will…
VAT treatment of unauthorised electricity consumption
In Case C-677/21 Fluvius Antwerpen, the Court of Justice of the European Union (CJEU) ruled on whether a supply of electricity that is unvoluntary and a result of a third party’s unlawful conduct constitutes a taxable supply of electricity carried…
Informal communication with the tax administrator
Does the tax administrator write you emails? Do they call you? Although the Tax Procedure Code only regulates formal methods of communication (data box, letter mail, etc.), emails and phone calls are not uncommon, offering a flexible and faster way…
Amendment to Labour Code changes rules for scheduling shifts
Following a recent judgment of the Court of Justice of the European Union (CJEU), Czech lawmakers have decided to modify the rules on providing weekly rest to employees when scheduling shifts: the CJEU deduced that daily rest is not part of the…
Major changes to Foreigners’ Residence Act
Apart from implementing the EU Blue Card Directive into Czech law, the amendment to the Act on the Residence of Foreign Nationals introduces other fundamental changes from 1 July 2023.