Tax & Legal Update
STEP: support for R&D and advanced technologies
In cooperation with the Agency for Entrepreneurship and Innovation, the Ministry of Industry and Trade has launched two calls for proposals under the STEP platform. These calls are aimed at supporting industrial research and experimental development…
New methodological guidance on procedures following expiry of tax assessment period
The General Financial Directorate (GFD) has issued new methodological guidance in response to a recent ruling of the Extended Chamber of the Supreme Administrative Court. The guidance standardises the procedures applied by tax authorities when tax…
CJEU: VAT treatment of loyalty points
In its recent judgment in Case C 436/24 Lyko Operations, the Court of Justice of the European Union (CJEU) held that points awarded under a customer loyalty scheme do not constitute “vouchers” pursuant to the VAT Directive where their use is…
Growing importance of corporate compliance systems
The year 2026 brings significant changes to corporate criminal liability. Among other changes, the amended law strengthens the role of preventative measures and introduces a new instrument in criminal proceedings in the form of conditional waiver of…
EET 2.0: financial administration’s position on contact payments
The EET 2.0 system, scheduled to be introduced in 2027, brings a new concept of “contact payment”. This plays a key role in determining which non-cash payments will be subject to the electronic sales reporting obligation and which will be excluded.…
Proposed amendment to VAT Act targets three key areas
The proposed amendment to the VAT Act, introduced in connection with EET 2.0, focuses on three main areas: irrecoverable receivables on the creditor’s side, unpaid liabilities on the debtor’s side, and changes to the VAT rate applicable to non…
Model contract to perform an office: Under what conditions can it be concluded?
A statutory body generally performs their duties for a company based on a contract for the performance of an office (smlouva o výkonu funkce). Unlike most private law contracts, this contract is subject to mandatory statutory requirements regarding…
Customs rules for small consignments to undergo major changes from 1 July 2026
A fundamental change is impending in the area of customs duties on low value consignments for end consumers. With effect from 1 July 2026, the European Union will abolish the existing customs duty exemption for small consignments with value of up to…
SAC: international hire of labour (IHOL) seen as possible indication of order by…
In its recent judgment, the Supreme Administrative Court (SAC) upheld the tax authority’s conclusion regarding the existence of control by the parent company, agreeing with the argument that the subsidiary’s management consisted predominantly of…
JMHZ: financial administration responds to ambiguities and practical questions
The financial administration has issued a communication concerning the reporting of exempt income from dependent activity and of the results of the year-end settlement of employment tax prepayments and tax credits.
SAC sides with taxpayer in appeal against VAT registration decision
In its recent ruling, the Supreme Administrative Court (SAC) stated that if an entrepreneur is unsure whether they meet the conditions for VAT registration, they may file an application for registration as a precautionary measure, pay the tax, and…
SAC on tax deductibility of expenses for lawyer’s lump-sum fee
The lump-sum nature of a lawyer’s fee does not in itself give rise to a different or less stringent standard of proof in tax proceedings, the Supreme Administrative Court (SAC) found in its judgment 3 Afs 262/2024–41. It also pointed out that…