Tax & Legal Update
Neither creditor nor debtor have to be VAT registered at the time of correcting tax…
Is it compatible with the VAT Directive that both creditor and debtor must be taxable persons for VAT purposes both when providing the supply and when correcting/reducing the taxable amount? The Court of Justice of the EU (CJEU) dealt with this…
Tax liberation package extended to retail and provision of services in business…
The Ministry of Finance adopted another tax liberation package, extending the waiver of road tax and income tax prepayments and VAT-related default interest to entrepreneurs operating in retail and the sale and provision of services that had to…
Second wave of applications for COVID – Rent support under way
Following the reintroduction of measures restricting retail and the provision of services, the government has come up with a second call to participate in the COVID – Rent programme. Applications may be submitted until 21 January 2021.
CJEU: Right to deduct VAT in full also for expenses benefiting a third party
In the Vos Aannemingen case (C-405/19), the Court of Justice of the European Union (CJEU) dealt with whether it is possible to deduct, in full, input VAT on expenditures that benefited a third party, and when such benefit shall be regarded as…
SAC sanctions CZK 1 mil fine for ‘Svarc’ system
In its June 2020 judgement, the Supreme Administrative Court (SAC) dealt yet again with the ‘Svarc’ system. The court held that a CZK 1 mil fine for allowing illegal work had been rightly imposed by the Labour Inspection Office. The decision should…
SAC defines difference between contract and foreign employees
The Supreme Administrative Court (SAC) has clarified the definition of a contract employee and a foreign employee as set out in the Sickness Insurance Act. The distinction between these two categories of employees working in the Czech Republic is…
International rules for taxation of digital economy progress next stage
In mid-October, the OECD released for public comments its revised rules for the taxation of the digital economy. The final version of the rules including draft legislation is planned to be issued in mid-2021. The rules are still based on a two…
Changes in occupational health services during state of emergency
The government has adopted an emergency measure on periodic and other health checks. As in the spring, the measure introduces the possibility to use (in specified cases) affidavits instead of initial health checks, or not to perform periodic health…
Record-breaking spam penalty
In August of this year, the Office for Personal Data Protection (the Office) imposed the highest fine to date for the repeated unsolicited sending of commercial communications (spam). The company selling second hand cars paid CZK 6 million.
DORA to enhance cyber resilience of financial institutions
The European Commission has released a proposal for the Digital Operational Resilience Act (DORA), laying down the requirements for the information and communication technology (ICT) security of financial institutions. Banks, stock exchanges,…
Investment incentives: Possibility to extend the deadline for meeting general terms…
In record time, the chamber of deputies and the senate have passed a draft government amendment to the Act on Investment Incentives allowing support recipients affected by the coronavirus pandemic to apply for the extension of the deadline for…