Tax & Legal Update
Temporary assignment of an employee: provision of service for VAT purposes
The Court of Justice of the EU (CJEU) dealt with the Italian San Domenico Vetraria SpA case (C-94/19) where a parent company assigned one of its directors to its subsidiary on a temporary basis. For this, they ‘only’ charged their costs incurred for…
SAC opines on frequent tax inspection targets
In its recent judgment (7Afs 472/2018) the Supreme Administrative Court (SAC) confirmed the conclusions of a tax administrator and the Regional Court of Justice in Ústí nad Labem. The SAC opined on supporting the tax deductibility of advisory and…
SAC rules against double taxation upon assignment of contractual sanctions
Regarding the assignment of contractual sanctions, the Supreme Administrative Court (SAC) determined what amounts should increase the tax base. According to the SAC, the tax base shall only be increased by the actual income from the assigned…
Another Czech case before CJEU: is there entitlement to VAT deduction if the supply…
The Supreme Administrative Court (SAC) referred two prejudicial questions to the Court of Justice of the EU (CJEU) concerning entitlements to VAT deductions. In the case in question, the taxable supply recipient failed to support who had provided…
Medical telephone consultations VAT exempt
In German case No. C48/19, the Court of Justice of the EU (CJEU) answered whether medical services provided in a form of a telephone consultation are exempt from VAT.
Transfer of tax residency within EU does not have to be tax neutral
The Supreme Administrative Court (SAC) has referred to the Court of Justice of the EU (CJEU) a prejudicial question whether Czech legislation disallowing to claim tax losses upon a change in the place of effective management within the EU is…
European Commission’s steps to fight coronavirus repercussions
Below we summarise certain steps adopted by the European Commission to fight the spread of COVID-19, primarily focusing on providing economic (material) assistance and loosening some regulations.
Exit tax – new criterion for cross-border restructuring
Effective from the taxable period started 1 January 2020, an amendment to the Income Tax Act introduced a tax on the relocation of assets without a change of ownership, i.e. exit tax. What cross-border transactions are subject to the exit taxation?
Different permit validities for family members of foreign employees
Like many other countries, the Czech Republic enables the relocation of employees together with their close family members, most often their spouses and children. Foreign nationals have been using this option very often, as they do not want to be…
Amendment to Income Tax Act for 2021 - new taxation of bonds and monetary…
The Ministry of Finance has submitted for external comments an amendment concerning income tax. From 2021, the amendment should change the taxation of bonds, reduce the administrative burden associated with the reporting of tax-exempt income paid to…
GFD on VAT rates from May 2020
VAT rates applicable to selected products and services will change in connection with an amendment to the Act on the Electronic Reporting of Sales. Most changes, such as the inclusion of water and sewer services or hairdresser’s and barber’s…