Tax & Legal Update
Reform of reduced VAT rates in EU
The current EU rules on VAT rates for goods and services were set almost 30 years ago and need to be modernised to correspond to developments in EU legislation. In 2018, the European Commission therefore proposed a reform of VAT rates, and an…
Ombudsman: how to improve treatment of EU workers
EU legislation aims to ensure that in member states, domestic workers and those from other EU countries are treated equally. A level-playing field is essential for free movement in the EU internal market. However, a recent survey by the Czech…
SAC on rules for mutual representation of states in issuing Schengen visas
The Czech Republic does not have diplomatic representation in all countries whose citizens are subject to visa requirements. The same applies to other Schengen member states. While this does not mean that citizens of those states cannot travel to…
How to present evidence in tax proceedings, or: less is sometimes more
Many of you have no doubt encountered a request for evidence during a tax inspection. However, being overzealous in providing evidence may not always pay off. What specific evidence a taxpayer is required to produce at each stage of a tax…
Changes in VAT rate on supply of medical devices
The amendment to the VAT Act in effect from 1 January 2022 narrows the scope of medical devices subject to the reduced VAT rate. If you buy or sell medical devices, we recommend you check whether this amendment also applies to your goods.
Coordination Committee: How to determine VAT treatment of superficies payments upon…
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors concluded that the VAT treatment of superficies payments paid on a recurring (e.g., monthly) basis, does not change over time.
Who bears the burden of proof in tax proceedings and why is it important to know?
The questions of who bears the burden of proof in tax proceedings and when has plagued many a taxpayer and even tax administrators. The burden of proof is distributed between them and during tax proceedings usually shifts from one to the other. The…
VAT from January – what’s new and what remains unchanged?
This new year brought only a few changes: the end of the waiver of VAT on supplies of electricity and gas; major differences in VAT for tour operators; and simplified Intrastat reporting. In contrast, the amount of turnover for statutory VAT…
EU wants to introduce a global minimum effective tax as early as 2023
In December last year, the OECD published draft rules for a minimum global effective corporate income tax of 15%. The European Commission subsequently issued a draft directive containing rules for the implementation of this tax by EU member states.…
Extended panel of the Supreme Administrative Court to rule on deadline for filing…
In its recent judgment, the Supreme Administrative Court again dealt with the possibility of filing additional tax returns in situations where subjective deadlines had elapsed. What is the consequence of non-compliance with subjective deadlines, and…
CJEU deals with actual supplier and related right to deduct VAT
The Court of Justice of the European Union has ruled on a question referred by the Czech Supreme Administrative Court whether the recipient of a taxable supply could be entitled to deduct VAT even if they were unable to properly prove the identity…