Tax & Legal Update
CJEU on right to deduct VAT upon entering liquidation
The Court of Justice of the European Union ruled on whether there is an obligation to correct the previously claimed VAT deduction on capital goods if a company enters into liquidation and applies for VAT deregistration.
Appeals proceedings: How long may it take?
The tax authority has assessed you with additional tax. You disagree and therefore decide to file an appeal, hoping to get a remedy soon. How long will it take for the appellate authority to examine the case? Are there any deadlines that the…
Windfall tax’s final stages: bill to be debated in Parliament
Parliamentary deputies are currently discussing the proposal to introduce a tax on windfall profits (windfall tax) for selected taxpayers in the fossil fuel and energy sectors and for banks. The tax should apply between 2023 and 2025. Excess profits…
Temporary protection extended by one year
In response to the war in Ukraine, the EU member states adopted a coordinated approach to refugee protection and enshrined temporary protection status in their national legislations. Under Czech regulations, temporary protection provides its holders…
Registration of beneficial owners: who exercises control?
Effective 1 October of this year, the Act on the Registration of Beneficial Owners has undergone fundamental changes. The legislators complied with the requirements of the European Commission and eliminated the deficiencies concerning the definition…
VAT treatment of sub-participation agreements
The Court of Justice of the European Union (CJEU) has dealt with the question whether sub-participation agreements, whereby a creditor under a credit agreement (a lender) transfers the credit risk to a third party, are covered by the exemption from…
Self-employed can associate and bargain collectively
The European Commission has issued guidelines on the application of EU competition law to collective agreements regarding the working conditions of self-employed persons who are in the same position as employees. Under these guidelines, it will be…
TREND programme to support development of 5G technologies
In October, the Technology Agency of the Czech Republic (TA CR) announced the 8th call to participate in research and experimental development under the TREND programme with a focus on the development of 5G and higher technologies.
EU unifies chargers for phones, tablets, and laptops
From 2024, all phones and tablets sold in the EU will have to be equipped with a USB Type-C charging port. Two years later, the obligation will extend to laptops.
Amendment to VAT Act to increase limit for compulsory VAT registration
The limit for compulsory VAT registration should increase from CZK 1 million to CZK 2 million from 1 January 2023. This should particularly help small businesses adversely affected by the COVID-19 pandemic. The draft amendment contains other changes…
When does Labour Code not apply to truck drivers?
In the summer, an amendment to the Road Transport Act entered into effect, as a result of which certain provisions of the Labour Code shall not apply to drivers in international road transport from 1 August 2022. The amendment thus restricts certain…
TREND programme for newcomers
The Technology Agency of the Czech Republic (TA CR) has announced the preliminary parameters of the next call for proposals under the TREND programme to support industrial research and experimental development. The 9th call is intended to kick-start…