Tax & Legal Update
Teleworking between Czech Republic and Germany or Austria: changes in insurance…
The Czech Republic has concluded framework agreements with Germany and Austria concerning persons working remotely in the other country, i.e., teleworking. Both agreements are effective from 1 March 2023 and respond to current trends in working from…
Ukrainians in the Czech Republic losing temporary protection due to Canadian visas
Temporary protection is provided to foreigners who left Ukraine after 24 February 2022 in connection with Russian aggression and meet certain specified conditions. This type of residence permit allows free access to the labour market and offers…
Supply of energies at capped prices: clarification of VAT treatment
Compensation for the supply of electricity and gas at capped prices constitutes a consideration received from a third party, on which the electricity or gas suppliers must pay VAT. The Ministry of Finance expressed this opinion following the…
SAC on VAT deduction: Who can dispose of goods as their owner?
The Supreme Administrative Court has ruled on a case concerning the purchase and subsequent sale of goods that remained in the warehouse of a supplier who had been duly authorised to resell them. The merit of the dispute was whether the taxpayer had…
Russia on the list on non-cooperative jurisdictions: tax implications for Czech…
With effect from 21 February 2023, the Council of the EU extended the list of non-cooperative jurisdictions for tax purposes to include the British Virgin Islands, Costa Rica, the Marshall Islands, and Russia. For the first time, this may have wider…
Rules for residence and work of foreigners face significant changes
The Act on the Residence of Foreigners in the Czech Republic, stipulating the conditions for the residence and employment of foreigners, has proven to be obsolete as it does not sufficiently reflect mainly the requirements of the international…
Energy price capping: compensation subject to VAT?
In February, the government approved an amendment to the government decree on compensation paid to suppliers for the delivery of electricity and gas at fixed prices, which was supposed to clarify whether this compensation is subject to VAT. The…
Supreme Administrative Court as last resort
The Supreme Administrative Court with which taxpayers may lodge cassation complaints is in principle the last resort for a substantive review of decisions of the Appellate Financial Directorate after a taxpayer’s unsuccessful defence before the…
What will global minimum effective tax do to Czech companies?
The finalisation of the global minimum effective tax regulation is progressing at the OECD and EU levels in parallel. There is a general consensus on the introduction of a 15% tax. EU member states are obligated to adopt the relevant legislation as…
Amendment to VAT Act 2024: reporting obligation for payment service providers
According to the upcoming amendment to the VAT Act, a new reporting obligation for payment service providers regarding payments abroad will apply from 1 January 2024. The draft amendment is currently awaiting its first reading in the chamber of…
News on tax obligations of transport service providers
The General Financial Directorate (GFD) has published Information summarising tax obligations in terms of VAT, personal income tax, and road tax for entities providing passenger transport through mobile applications (e.g. Uber, Bolt or Liftago). It…