Tax & Legal Update
Proving services provided by parent company and principle of legitimate expectation
In recent judgment No. 30 Af 57/2021-76, the Regional Court in Brno reminded us how important robust documentation of services is in defending the tax deductibility of expenses. The core of the dispute involved a taxpayer claiming in their income…
Introduction of carbon border tax imminent
The EU has reached an agreement on the introduction of a carbon border adjustment mechanism. The purpose is to level the prices of products subject to carbon fees (allowances) within the EU with the prices of comparable goods imported from outside…
Temporary protection period extended; foreigners must register online
In the November 2022 issue of Tax and Legal Update, we informed you about a government bill extending temporary protection of Ukrainian refugees by one year. During January, the amendment successfully passed through all stages of the legislative…
Class actions coming soon but not for all
Shortly before Christmas last year, the Ministry of Justice presented a bill on collective proceedings. The new legislation, which could enter into force as early as this year, will allow consumers to assert their identical claims against the same…
GFD Instruction D-59 from corporate income tax perspective
GFD Instruction D-59 replacing existing Instruction D-22 mainly brings clarifications resulting from the conclusions of available case law and coordination committees from recent years. Pertaining to corporate income tax, however, the instruction…
Companies can get support for employee education and training
The Operational Programme Employment+ has announced a call for employers who want to support their employees in education and training so that workers may adapt their skills to changes or a more suitable working environment. Enterprises based in…
CJEU: Is it necessary to pay VAT stated in tax document?
The Court of Justice of the European Union has refuted the Austrian court's belief that any person who indicates tax on a tax document is liable to pay that tax. If the service recipients are only end costumers not entitled to deduct VAT,…
CJEU challenges transaction benefiting from simplified procedure for triangular…
The Court of Justice of the EU ruled on the use of the simplified procedure for triangular transactions. If documents issued by the middle party under the scheme do not comply with the VAT Directive, the scheme cannot be used, according to the court.
Regulation on foreign subsidies: new obligations to affect mergers and public…
Until now, the EU has not had the instruments to prevent distortions of the EU market due to foreign subsidies or to prevent an unfair advantage for subsidised companies from third countries. This should change with new Regulation (EU) 2022/2560 of…
GFD publishes Q&As on DAC7
The document providing methodological guidance through questions and answers summarises the obligations of digital platform operators arising from the new reporting obligation relating to sellers and sales made through these platforms.
New Accounting Act has clear outlines
The law promises to reduce the administrative burden and move accounting towards international standards. Together with implementing decrees, accounting standards, and a law amending related legislation including the Income Tax Act, the act should…