Tax & Legal Update
AML regulation: risk of penalties of up to CZK 130 million
Obliged persons under the AML Act will be subject to new duties whose violation may result in severe penalties that could be potentially destructive for smaller companies. The legal regulation of sanctions relating to anti-money laundering measures…
New calls to participate in EIC OP also available for large businesses
September has brought new calls to participate in the Enterprise and Innovations for Competitiveness Operational Programme (EIC OP), consisting of the Potential, Innovation, and Application Programmes. Subsidies will also be available for large…
Amendment to electronic reporting of sales and 10% VAT on food services and e-books
At the end of September, the president signed an amendment to the Act on the Electronic Reporting of Sales (ERS), based on which the remaining businesses and entrepreneurs so far omitted from the obligation will be subject to the mandatory…
Update on amendment to VAT Act for 2020 (quick fixes)
An extensive amendment to the VAT Act for 2020 (quick fixes), aiming to harmonise the VAT regime applicable to intra-community supplies of goods, has been submitted to the Chamber of Deputies. It implements the EU legislation and, therefore, within…
SAC: Czech VAT regulation contrary to EU directive
The Ministry of Finance is preparing an amendment to the provision regulating the tax exemption of exports. The amendment will remove the precondition that goods must have been released to a relevant customs regime. Nonetheless, remaining unclear is…
CJEU decision fundamentally changes concept of reference periods for determining…
The Court of Justice of the EU recently issued a judgment that will most likely affect most Czech (and other) employers. The decision fundamentally changes the approach to reference periods used for monitoring overtime work or unevenly distributed…
VAT upon early termination of financial leases
Recent CJEU case law has confirmed that amounts charged upon the early termination of financial leases do not always have be viewed as supplies not subject to VAT. This applies even to payments previously defined in contracts as damage compensation,…
PDPO can no longer fine public authorities and entities
In March of the current year, the Supreme Administrative Court confirmed a fine of CZK 500 000 imposed on the Ministry of Internal Affairs by the Personal Data Protection Office (PDPO) for breaching its duty to properly secure personal data. …
What are the limits to a statutory body member’s loyalty?
In its case law, the Supreme Court (SC) has devoted considerable attention to the concept of due managerial care. Loyalty is an important component of this standard of care. The general rule stipulates that an elected member of a body of a legal…
Constitutional Court stands up for consumers with decisions on the application of…
The Constitutional Court recently issued two major judgments dealing with consumer credits and arbitration clauses in credit contracts. Both decisions confirmed the recent trend of the entire justice system consistently making an effort to balance…
SAC: employer’s instruction on safe work performance must be exact
In a case involving a fatal on-the-job-accident, the Supreme Administrative Court dealt with to what extent employers have to organise their employees’ work and set work procedures to meet work safety and health protection duties. The verdict is…