Tax & Legal Update
Contributions to insurance company viewed as price reduction for VAT purposes
Judgment C-717/19 (Boehringer Ingelheim) dealt with a question of whether for VAT purposes, contributions paid to an insurance company for subsidised medicines constitute a reduction in the invoiced price. The Court of Justice of the European Union …
Court rejects possibility of increasing investment incentive tax credit through…
The Regional Court in Hradec Králové confirmed the tax administrator’s opinion that it is not possible to increase the insurmountable total of tax credits through discounting and thus effectively draw an investment incentive in a higher amount than…
Unequal pay: Constitutional Court rejects Czech Post's complaint
You may remember the case of a Czech Post driver who objected to his pay not being the same as that of a colleague in Prague. The Constitutional Court has now sided with the Supreme Court's decision that external social and economic conditions, such…
Changes in international taxation probably as early as 2023
The G20 has endorsed the framework changes to international taxation agreed at the OECD level (including non-member countries) on 8 October 2021. The changes are spread across two pillars containing rules for shifting taxing rights on profits from…
Blue Card – future of EU labour mobility
Projections show that by 2070, the European Union will have 292 million people of working age, compared to 333 million in 2016. This trend would mean a significant decline in the workforce for the EU member states. This is one of the reasons why the…
Beware of high penalties when posting workers abroad
Although the European and Czech regulation of special rights of employees posted abroad is quite old, many employers are unaware of its existence or choose to ignore it arguing that no one will find out. With such ignorance, they are risking heavy…
When do penalties for additional tax returns arise? How to avoid them?
Generally, no penalty arises if the incorrectly paid tax is corrected in an additional tax return. Unfortunately, the amendment to the Tax Procedure Code effective from 1 January 2021 gives rise to situations where an additional tax return can lead…
Deputies do not approve digital tax
In the just-ended parliamentary term, the Czech Chamber of Deputies did not approve the bill on a digital service tax. Hence the bill would have to go through the entire legislative process again should the new government want to introduce a digital…
VAT on electricity and gas supplies to be waived
Based on Wednesday’s decision by the Minister of Finance, VAT on supplies of electricity and gas, their acquisition from another EU member state, and their imports is to be waived. The waiver shall apply to all supplies with the date of taxable…
National Recovery Plan offers new support opportunities
To revive the Czech economy after the COVID-19 pandemic, the Ministry of Industry and Trade has prepared the National Recovery Plan, a set of reforms and investments aiming to support Czech businesses and to reignite and modernise the Czech economy.
SAC: right to deduct input VAT always to be proved by the taxpayer
In a case involving an entity providing both taxable health services and services exempted from tax without the right to deduct, the Supreme Administrative Court (SAC) dealt with proving the link between the right to deduct and a specific output…