Tax & Legal Update
SAC: standard of loss and tax deductibility
In its July 2025 judgment 1 Afs 77/2025-74, the Supreme Administrative Court (SAC) dealt with the appropriateness of and change to a standard loss rate set by a taxpayer and with the offsetting of shortages and surpluses across different types of…
CJEU: liability for unpaid tax and denial of VAT deduction applied simultaneously
In its recent judgment, the Court of Justice of the European Union (CJEU) held that in the event of tax fraud, it is possible to deny the right to deduct VAT and at the same time apply joint and several liability for tax not paid by the supplier.
Anti-trust office launches anonymous whistleblowing tool
The public and employees may now report suspected cartel agreements and other anti-competitive practices anonymously, as the Office for the Protection of Competition aims to strengthen the protection of economic competition.
EU: Strengthening air passenger rights
Demanding free-of-charge carry-ons or seat selection for children and transparent pricing when booking flights, the EU is going to battle against the practices of low-cost airlines. In June 2025, the EU’s Committee on Transport and Tourism adopted…
Will first ruling trigger class action avalanche?
Exactly one year after class actions were introduced into Czech law, the Municipal Court in Prague has ruled on the claims of customers to whom a company failed to deliver ordered goods. The customers presented their claims in joint proceedings and…
Supreme Administrative Court on beneficial owner of royalties
The tax administrator disputed foreign distribution companies as the beneficial owners of royalties and regarded them as mere intermediaries, therefore refusing the application of withholding tax in the amount under the double tax treaties based on…
CJEU: VAT perspective on supply of services to subsidiaries
In a recent judgment, the Court of Justice of the European Union (CJEU) addressed whether a supply of several partial services by a parent company to a subsidiary in the context of active management constitutes a single supply. The CJEU concluded…
GFD information on reduction of VAT deduction for bad debts
At the beginning of July, the General Financial Directorate (GFD) issued its information on the correction of a VAT deduction for overdue receivables on a debtor's part, explaining the practical application of the new provision of Section 74b(3) of…
What to prepare for with introduction of JMHZ: employee benefit reporting
The senate has passed the Single Monthly Employer Reporting (in Czech Jednotné měsíční hlášení zaměstnavatele or JMHZ) bill. The effective date of the bill remains scheduled for 1 January 2026, with some employer registration and monthly reporting…
Senate: Single Monthly Employer Reporting bill passed
The senate has passed the Bill on Single Monthly Employer Reporting (in Czech Jednotné měsíční hlášení zaměstnavatele or JMHZ). However, the accompanying bill containing unrelated legislative amendments was returned to the chamber of deputies with…
Modernisation Fund to distribute up to 6 billion for green transformation of heat…
Under the auspices of the State Environmental Fund, on 7 July 2025 the Modernisation Fund announced HEAT Call No. 1/2025 - Modernisation of Thermal Energy Supply Systems. The call aims to support the transition of heat plants to clean energy sources.
How to account for demonstration goods
A question many entities face is how to properly account for goods or own products they use for demonstrations. The new Interpretation of the National Accounting Council I-51 provides guidance on how to proceed when classifying demonstration goods…