Tax & Legal Update
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…
National Recovery Plan’s first calls: photovoltaics, electric cars and water saving
The Ministry of Industry and Trade has issued more information on the use of funds from the National Recovery Plan: Beneficiaries can also be large businesses, and projects can be implemented throughout the Czech Republic, including Prague. The…
Investment incentives to increase in some regions, decrease in others
In November, the government approved two decrees that will affect investment incentives provided in the Czech Republic. In a large part of the Czech Republic, the conditions will be more favourable, and the maximum framework of the support provided…
Antivirus Regimes A and B extended until end of February
On 29 November 2021, the government decided to extend Antivirus Regime A until the end of February 2022, while at the same time activating Regime B from 1 November 2021 to 28 February 2022, thus responding to the current adverse development of the…
Another wave of COVID subsidy programmes to support business
In the context of the current pandemic situation, the government has approved the re-launch of some business support programmes, including COVID - Uncovered Costs and COVID 2021.
Application of time test to proceeds from sale of former cooperative apartment
If you intend to sell an apartment that had been in cooperative ownership (owned by a housing cooperative in which you were a member) before you became its owner, beware of calculating the time test: the period of time of the membership in the…
TA CR introduces new international call: CHIST-ERA
The Technology Agency of the Czech Republic (TA CR) has announced an international call concerning information and telecommunication technologies. One of its topics responds to the upsurge in harmful behaviour on social networks in the form of…
SAC comments on invoicing services containing tax non-deductible expenses
The Supreme Administrative Court (SAC) confirmed that tax non-deductible expenses cannot be treated as deductible solely on the grounds that the taxpayer invoiced them plus a profit mark-up to the parent company for the provision of services.
SAC refuses right to deduct VAT on acquisition of movable assets after business…
The Supreme Administrative Court (SAC) rejected a cassation complaint filed by a taxpayer in a dispute concerning a refusal of the right to deduct VAT on an acquisition of movable assets followed by a purchase of a business establishment from the…
Contributions to insurance company viewed as price reduction for VAT purposes
Judgment C-717/19 (Boehringer Ingelheim) dealt with a question of whether for VAT purposes, contributions paid to an insurance company for subsidised medicines constitute a reduction in the invoiced price. The Court of Justice of the European Union …
Court rejects possibility of increasing investment incentive tax credit through…
The Regional Court in Hradec Králové confirmed the tax administrator’s opinion that it is not possible to increase the insurmountable total of tax credits through discounting and thus effectively draw an investment incentive in a higher amount than…
Unequal pay: Constitutional Court rejects Czech Post's complaint
You may remember the case of a Czech Post driver who objected to his pay not being the same as that of a colleague in Prague. The Constitutional Court has now sided with the Supreme Court's decision that external social and economic conditions, such…