Tax & Legal Update
Initiation and termination of tax inspections after amendment to Tax Procedure Code
The Tax Procedure Code has been amended, with changes already effective since 1 January 2021. How has the amendment affected tax inspections, in particular their initiation and termination? One positive aspect is that it will definitely help…
CZK 0.5 billion available from TRANSPORT 2020+
On 14 April 2020, the Technology Agency of the Czech Republic announced its third call to participate in the TRANSPORT 2020+ programme, aiming to provide support to businesses operating in applied research, experimental development and innovation…
Amendment to VAT Act 2021: Goods from e-shops becoming more expensive?
From 1 July 2021, VAT will be collected on all import consignments regardless of their value. Thus, when purchasing goods from foreign e-shops, it will be necessary to consider, among other things, whether the product price includes or excludes VAT.…
Coordination Committee: Is compensation for unconsumed goods subject to VAT?
The Czech Chamber of Tax Advisors has come up with a proposal to unify the interpretation regarding the application of VAT in situations when the customer compensates the supplier for expenses incurred by the supplier for material unconsumed upon…
Municipal Court holds protective measure contrary to law - rules for returning from…
On Wednesday 31 March, the Municipal Court in Prague annulled part of the protective measure regulating the crossing of state borders, on the grounds of it being contrary to law, effective 5 April. The Ministry of Health responded on Saturday by…
Information on ATAD – continued
In the March issue of our Tax and Legal Update, we commented on the General Financial Directorate’s Information on Measures Arising from the Implementation of the Anti-Tax Avoidance Directive (ATAD). This time we summarise information on the…
CJEU on reduction of taxable amount on provision of indirect bonuses
In C-802/19, the Firma Z case, the Court of Justice of the EU (CJEU) opined on the treatment of indirect bonuses provided to end customers where goods had originally been delivered to another member state as supplies exempt from VAT with entitlement…
CJEU: Supplies between head office as part of VAT group and foreign branch subject…
The Court of Justice of the European Union (CJEU) issued its long-awaited decision in the Danske Bank case (C812/19) and clarified the relationship between a foreign branch and its head office that is part of a VAT group. Six and a half years after…
Is additional tax assessment due to VAT fraud reason enough not to waive penalties?
If the tax administrator concludes that a VAT payer has even indirectly been involved in VAT fraud (typically, by having accepted a delivery affected by fraud), the entitlement to VAT deduction will be withheld from the payer. The payment of…
Preferential tax treatment is illegal public aid, even FC Barcelona will feel it
The Court of Justice of the EU (CJEU) has finally closed a long-standing dispute over the preferential tax treatment of the largest football clubs in Spain. The conclusion is unforgiving: FC Barcelona, FC Real Madrid and other clubs will have to pay…