Tax & Legal Update
SAC on VAT deduction and supplier check
The Supreme Administrative Court (SAC) has once again dealt with the refusal of a VAT deduction on the grounds of a company's involvement in a transaction affected by tax fraud. One of the issues was whether the company's checks of its suppliers had…
Exemption of income from sale of securities and shares in corporations restricted…
From 1 January 2025, income from the sale of securities and shares in corporations meeting the time test of three years for securities and five years for shareholdings will be exempt from personal income tax only up to CZK 40 million per taxpayer in…
VAT Act amendment coming into effect: overview of main changes
The chamber of deputies has approved an amendment to the VAT Act in its third reading. The senate is expected to approve the chamber's wording, and the planned effective date of 1 January 2025 will therefore be adhered to. Certain changes, in…
Subsidies for charging station constructions
From 14 October 2024, applications can be submitted for support under Calls 30 and 31 of the Operational Programme Transport 2021– 2027, which aim to support the development of fast-charging infrastructure for passenger vehicles.
New regulation of kratom and low-level THC content cannabis
‘New’ or ‘designer’ drugs like kratom are rapidly changing the market of addictive substances, and their sale needs to be regulated. Under the new rules, it will only be possible to buy such products in specialised shops. Rules are also being…
Taxes Chamber of deputies: proposal to abolish notified agreement scheme
The planned introduction of a ‘notified agreement’ scheme for agreements to perform work outside employment is likely to be cancelled. A proposal has also been submitted in the chamber of deputies to abolish mandatory social security and health…
New limit for health-related benefits
The chamber of deputies is currently debating an amendment to the Employment Act and other changes to laws. In the area of income tax, it is proposed to introduce a new limit specifically for health benefits, up to the amount of average wage. The…
CJEU: Veggie burgers can be called burgers
Member states may not prohibit the use of names associated with animal-based products for plant-based foods if there is no specific legal definition of such names. Thus, according to the Court of Justice of the EU (CJEU), it is not possible to…
How to avoid assessment of tax using auxiliary mechanisms?
In some cases, the tax administrator may determine tax even without the taxpayer's cooperation, using auxiliary mechanisms. We summarise below what this means for the taxpayer and how to avoid this situation.
Retirement savings products likely to face changes to compounding of savings periods
Amending proposals have been submitted as part of the forthcoming amendment to the Act on Child Care Services in Children’s Groups to ensure that savings periods are added up upon the transfer of funds to new retirement savings products and that the…
Can an additional VAT return be filed after the end of a tax inspection?
The Supreme Administrative Court (SAC) dealt with a dispute concerning the possibility of filing additional tax returns for lower tax after a tax inspection had been completed. The Supreme Administrative Court sided with the regional court which…