Tax & Legal Update
Compensation for unrealised service paid upon early contract termination subject to…
The Court of Justice of the EU (CJEU) held that the amount paid by customers upon early terminations of contracts should be considered part of the price for services and thus subject to VAT. The CJEU based its judgment primarily on the recent…
SAC: Special regulation of period for assessing tax overrides general regulation
The Supreme Administrative Court dealt with the relationship between the general regulation of the period for assessing tax under the Tax Procedure Code and the special regulation of the period under the Income Tax Act in respect of the commencement…
CJEU: Services associated with both taxable and exempt supplies may not be partially…
In the BlackRock Investment Management (UK) Ltd (C-231/19) case, the Court of Justice of the EU (CJEU) ruled on whether it is possible to treat a service provided via an IT platform used for both exempt and taxable supplies as a supply exempt from…
European Commission’s first plans for tax reform within the EU
In mid-July, the European Commission published a first draft of a new tax package aimed to boost the economy and create fair and simple taxation rules within the EU. A more detailed version will be published at the end of 2020, should the OECD’s…
CJEU: Member states not obliged to act in concert
Transportation of goods sold to another member state in form of distance selling can be considered effected by the supplier or on its behalf also when the transport agreement with the carrier is concluded by the customer and the supplier plays an…
Privacy Shield invalidated; standard contractual clauses remain valid
The Court of Justice of the EU (CJEU) invalidated the Privacy Shield, based on which it was possible to transfer personal data to the USA, and left standard contractual clauses in effect with certain exceptions. The question is whether personal data…
End of July brings revolution in posting of workers
A package of significant changes to the posting of workers from abroad entered into effect on 30 July 2020 as part of an amendment to the Labour Code. This package adapts Czech legislation to comply with an amendment to the EU Directive on the…
Rules for employing foreigners changed again in July
In step with the epidemiologic situation both in the Czech Republic and worldwide, the Ministry of Health continues to regularly update protective measures regulating the entry of foreign nationals into the Czech Republic. Two new protective…
New COVID programme – Accommodation
The government has approved the Ministry of Local Development’s proposal to provide new support to providers of accommodation services. The state will contribute CZK 100 to CZK 300 per every room according to the standard of accommodation over the…
2019 through the financial administration’s eyes
The Report on the Activities of the Czech Financial Administration for 2019 brings very interesting statistical data and information. For example, in 2019, the financial administration completed a total of 30,073 tax inspections and procedures to…
EU citizen’s temporary residence certificate – lessons learned from COVID-19
The free movement of persons is one of the essential principles for the functioning of European integration, without which we no longer can imagine our work and private lives. Most of us use this freedom just for tourism or short-term work purposes.…