Tax & Legal Update
CJEU on the right to deduct VAT if supplier pretends to be another person
The Court of Justice of the European Union (CJEU) recently ruled that taxpayers involved in tax fraud shall be denied the right to deduct VAT in full, even if the loss of tax revenue (tax evasion) is lower.
Court agrees: bonds issued under commission agency agreement not to be included in…
The court agreed with our tax litigation team in a dispute concerning thin capitalisation rules. When applying the test, the economic substance of the credit relationship should be taken as a basis – the bonds issued for unrelated investors under a…
EU tightens rules for placing coffee, palm oil, or beef on the market
The EU is preparing a regulation imposing stricter rules for making certain commodities and products available on the EU market and exporting them from the EU market. The new regulation shall apply, for instance, to coffee, soy, palm oil, cattle, or…
EU directive ensuring minimum taxation level enters into effect
The EU member states have finally agreed on the introduction of a minimum effective tax rate: the directive on ensuring a global minimum level of taxation for multinational groups and large national groups entered into effect on 23 December 2022. It…
Overturning financial administration decisions
The Appellate Financial Directorate has rejected your appeal and you disagree with the decision. Can you defend yourself further? Is it at all worth continuing the dispute with the financial administration? Today, we will focus on these and other…
Notification obligation when employing foreigners also applies to foreign companies
One of the administrative tasks connected with employing foreigners is the employer's notification obligation towards the Czech Labour Office. Even Czech employers are often not aware of this obligation, or do not know how to deal with the…
Gas and electricity price caps for large businesses from January: support conditions…
2023 will see electricity and gas prices capped also for large businesses regardless of whether they are low-voltage, high-voltage, or very high-voltage electricity consumers. If you wish to take advantage of support for high electricity and gas…
What’s new in tax for employees in 2023?
With the new year come changes in employee taxation as well as social security and health insurance. The maximum assessment base for social security contributions has increased and the limit from which wages are taxed at 23% has been raised. Many…
Monetary contribution to employee vacation: taxable income
In its recent decision, the Supreme Administrative Court upheld the state authorities’ interpretation as to what can be considered a non-monetary benefit to an employee from an employer. The ruling has implications for the exemption of the benefit…
How to set minimum share of low-emission vehicles in public procurement?
The new Act on the Support to Low-Emission Vehicles, which belatedly transposes into Czech law Directive (EU) 2019/1161 of the European Parliament and of the Council on the Promotion of Clean and Energy-Efficient Road Transport, stipulates a…
New rules on state aid for research, development, and innovation
In October, the European Commission adopted its revised rules on state aid for research, development, and innovation, replacing the existing 2014 framework and aiming to simplify the provision of state aid to boost investment into science, research…
CJEU on determining place of supply for services provided within VAT chain fraud
According to the basic rule, the place of supply for granting emission allowances is the place of the service recipient. Involvement in tax fraud has no effect on this determination, ruled the CJEU in case C-641/21 Climate Corporation Emissions…