Tax & Legal Update
Excise duties: EMCS system extended
An amendment to the Excise Duty Act implementing Council Directive (EU) 2020/262 enters into effect partly in October 2022 and fully from 13 February 2023. The directive aims to enhance harmonisation across member states, clarify the terms used, and…
Right to deduct where supplier has not paid output VAT
In case C-227/21 HA.EN. the Court of Justice of the European Union (CJEU) dealt with whether a supply recipient has the right to deduct VAT if they knew or should have known that the supplier was not going to pay output VAT because of financial…
When do structures come into existence or cease to exist in the legal sense? What…
In its recent judgment, the Supreme Administrative Court dealt with the question of when a structure comes into existence or ceases to exist as a thing in the legal sense (7 Afs 132/2022-22), which impacts the deductibility of tax expenses.
Upcoming legislative changes to agreements outside employment contracts
The Ministry of Labour and Social Affairs has submitted a long-awaited bill to amend the Labour Code, which is to implement two EU directives in Czech law. Among other things, the new regulation will affect the working conditions of employees…
Amendment to Labour Code introduces new home office rules
The Ministry of Labour and Social Affairs has published an eagerly awaited draft amendment to the Labour Code introducing several new changes, the most significant one being the comprehensive regulation of home office. A more detailed regulation of…
CJEU again on right to deduct VAT in context of holding companies
The Court of Justice of the European Union has ruled on whether a holding company is entitled to deduct VAT on inputs relating to services provided as a shareholder’s contribution.
EC's landmark decision blocks merger of companies below turnover threshold
In a breakthrough decision, the European Commission has prohibited the merger of two US companies, Illumina and Grail, operating in the European biotechnology market. For the first time ever, the Commission did not allow a merger to proceed even…
Windfall tax outlined
The government has released a working paper on extraordinary profits tax (windfall tax) that it used in its negotiations with the National Economic Council of the Government (NERV). The finance ministry will now use the document as a basis for…
Social security perspective on cross-border work from home and remote work
During the pandemic, to allow some sectors to operate without major restrictions, employees often had to work from home or remotely. Working from home (including cross-border) has thus become a common part of working life, even in ‘post-covid’ times…
Can VAT be deducted within the adjustment mechanism even after the limitation period?
In the Dutch case of Company X (C-194/21), the Court of Justice of the European Union held that the adjustment mechanism should not be applied where the taxable person failed to exercise the right to deduct VAT and has lost that right due to the…
Tax deferment and waivers – what deadlines apply?
Waivers of default interest, penalties, interest on the deferred tax amount, and tax deferment itself offer interesting options for mitigating the negative effects of the assessment of additional tax. What are the relevant time limits for applying…
When claiming R&D allowance, attention must be paid to cost accounting
According to the Regional Court in Ostrava, when proving compliance with the conditions for claiming a research and development allowance, it is necessary that expenses incurred in the implementation of research and development projects are…