Tax & Legal Update
Dispute over obligation to remeasure advances at year-end
The Supreme Administrative Court addressed the question of whether a taxpayer is obliged to remeasure recognised advances for the purchase of fixed assets denominated in a foreign currency as at the balance sheet date. During a tax inspection, the…
SAC on proving VAT exemption for supplies of goods to the EU
The Supreme Administrative Court has ruled on proving VAT-exempt supplies of goods to the EU to customers other than those declared in EC Sales List. It indicated that the incorrect identification of the EU customer of the goods does not necessarily…
CJEU: Fees for registration for medical procedures may be exempt from VAT
The Court of Justice of the European Union has ruled on whether consultations on the prescription of medical procedures can be regarded as activities closely related to the provision of medical and healthcare services that are exempt from VAT.
Duty to declare tax on one-time supplies paid in instalments
In Case C-324/20, the Court of Justice of the European Union addressed the question of when the duty to declare VAT occurs for one-time supplies paid for in instalments.
European Commission: progress in VAT system digitisation
In January this year, the European Commission launched a comment procedure to collect views on the digitisation of the VAT system in the member states, as it believes that the digitisation and automation in applying VAT across the EU will help…
ESG and new obligations for investment firms
From August 2022, investment firms, securities traders, and other financial service providers covered by MiFID II will be required to introduce more detailed information and questionnaires for investors when providing investment advice and portfolio…
Harsh penalties for breach of employer’s reporting obligation
Foreign employees are relatively commonplace for many Czech employers. We know from practice that employers often neglect some of their obligations, especially for foreign workers from the EU, and are then surprised when penalised by competent…
Home office rules? Legislative amendment back on table
Work from home has boomed during the COVID-19 pandemic, and many employees continue to use it. Yet, the Labour Code addresses work outside employer's workplace only marginally, and no amendment to the existing regulation has passed so far. This…
Discontinuation of enforcement proceedings without creditors having to cover costs
On 1 January 2022, an amendment to the Enforcement Procedure Code entered into force, aiming to resolve the problem of multiple executions and to modify the rights of the parties to the proceedings. However, the final effect of the new regulation is…
When does burden of proof lie with tax authority?
The tax authorities often put taxpayers in the position of having to prove the overall accuracy of the tax reported in their tax returns. The burden of proof is generally on the taxpayer, but in certain cases it can rest on the tax authority instead…
Upcoming tax changes: an overview
The new government and chamber of deputies have begun another four-year legislative cycle in which they will try to push through their agenda. The implementation of several EU directives may bring about important changes, especially in direct taxes.…
Economic turmoil also affecting transfer prices
Inflation is one of the main economic issues for 2022. The impact of high input prices and disrupted supply chains are other factors businesses must cope with. But there are also other adverse factors. The slowing economy has also revealed new…