Tax & Legal Update
Are you ready for changes in the VAT ledger statement?
With the recent amendment to the VAT Act, the revised Instruction on Completing the VAT Ledger Statement entered into effect on 1 April 2019. Its most significant changes concern corrections to the tax base for irrecoverable debt. What to watch out…
VAT treatment of members of societies finally clarified?
In its May and June sessions, the Coordination Committee commented on the tax treatment of members of societies (former associations) without legal personality. A presentation from the side of the tax advisors dealt with the VAT treatment when…
New Instruction D-34 and translation of TP Guidelines
The financial administration is unifying procedures to determine tax bases affected by transactions between associated enterprises, both domestic and cross-border.
Watch out for tax inspections! Companies drawing investment incentives surprised by…
Apart from loss-making companies, tax administrators now systematically target transfer pricing in profit-making companies that draw investment incentives.
CJEU: new interpretation of EU social security regulations
The Court of Justice of the European Union (CJEU) ruled in a case concerning a social security system applicable to seamen. The judgement may affect determining the applicable social security rules for workers resident in the EU but working outside…
CJEU: fuel cards a financing tool?
The Court of Justice of the EU (CJEU) ruled in the case of Vega International (C-235/18), dealing with the taxation of purchases of fuel supplied to subsidiaries. Considering the nature of the service provided via fuel cards, the court concluded…
Time clocks, really? CJEU’s decision on recording working hours and its effect on…
In the middle of May this year, the Court of Justice of the EU (CJEU) issued a judgment holding that member states must stipulate the employers’ obligation to set up an objective, reliable and accessible system allowing to measure the duration of…
Constitutional Court reversing the Supreme Court’s opinion on employer’s entitlement…
Less than half a year ago we wrote about a rather surprising Supreme Court ruling concerning the proportionality of a penalty under a non-compete clause. The case involved a sales director who had breached her obligation not to work for her former…
Supreme Court: employee may be personally liable for invalid termination notice
With its latest judgment, the Supreme Court has opened the topic of employees’ liability for damage caused by invalid termination notices. The court held that it sufficed that an invalid termination notice had been an important but not necessarily…
VAT refund also for irrecoverable receivables from non-payers?
In response to an older ruling of the Court of Justice of the EU (CJEU) in the Enzo Di Maura case (C-246/16), the amendment to the VAT Act effective from 1 April 2019 has extended the scope of VAT refund also for irrecoverable receivables from non…
Assessing agent’s dependence in the context of permanent establishment
The Supreme Administrative Court (SAC) has described the key defining features of a dependent agent for the purpose of assessing whether a permanent establishment of a foreign entity has started to exist in the Czech Republic. Among its conclusions…