Tax & Legal Update
EP: multinationals to publish profits and taxes paid in individual countries
On 11 November 2021, the European Parliament approved a proposal for the directive introducing public country-by-country reporting. The CbC report, informing, among other things, about profits generated and taxes paid, broken down by individual…
New VAT rules for tour operators from 2022
Tour operators will encounter significant changes in the VAT area as of 1 January 2022. From that date, tour operators should start declaring VAT on advances received and should not calculate VAT based on aggregated monthly data. Furthermore,…
Carer’s allowance and self-isolation payment relaunched
Within the new wave of the pandemic, the number of adults and children becoming ill is again increasing, and so is the number of employees staying at home. The government has proposed restoring benefits for employees who are unable to attend work.
GFD clarifies procedure regarding VAT waiver for electricity and gas
According to the General Financial Directorate (GFD), the waiver of VAT shall apply to electricity intended for any purpose. As for gas, the waiver shall apply both to supplies through the distribution system, and to tankers and cylinders. The GFD…
Personal Data Protection Office imposing penalties mainly for unsolicited…
The Office for Personal Data Protection has published an overview of its inspections for the first half of 2021. The office most often and most severely sanctioned sending of unsolicited commercial communications. Penalties were also imposed for…
SAC once again restrains tax administrators from collecting tax, cost what it may
The Supreme Administrative Court has published a long-awaited judgment in the case of the pharmaceutical company ELI LILLY ČR, s.r.o., which concerned the invoicing of marketing and distribution costs. The company sought to achieve minimum…
CJEU: conditions for denying right to deduct VAT if invoice includes fictitious…
The Court of Justice of the European Union (CJEU) dealt with the question of whether a recipient of a taxable supply in the reverse charge regime may be denied the right to deduct VAT if the invoice indicated a fictitious supplier.
Interest on interest in tax proceedings
In its recent judgment, the Supreme Administrative Court confirmed that taxpayers are entitled to compensation for late declared and paid interest on the tax administrator's unlawful conduct – again, in the form of interest on the tax administrator…
Information obligation: what question may tax officers ask?
The tax authorities often call upon taxpayers – both formally and informally – to provide them with information or documents. While the information obligation towards the tax administrator is rather extensive, it does have its limits. Sometimes,…
Constitutional Court: employees deserve wages for on-call breaks
The Constitutional Court stood up for a firefighter from Ostrava airport. During his break from work, the firefighter had to remain ready to intervene even at the farthest point of the airport within three minutes. According to his employer, he was…
Taxpayer (yet again) fails to bear burden of proof regarding advertising services
The Supreme Administrative Court (SAC) ruled against the taxpayer and dismissed a cassation complaint in a dispute concerning the refusal of the right to deduct VAT on received advertising services. In the SAC’s opinion, if the extent of the supply…