Tax & Legal Update
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…
American digital giants strongly object to French tax
In July, the Office of the US Trade Representative initiated an investigation into the digital tax recently introduced in France. The USA have expressed concern that the implemented tax unfairly targets mainly American digital companies. The office…
SONIA to replace LIBOR
The end of the London Interbank Offered Rate (LIBOR) is approaching, since this rate will only be used until the end of 2021. The Bank of England, the UK’s central bank, is introducing the Sterling Overnight Index Average (SONIA), as lost confidence…
E-vignettes coming into force in the Czech Republic
Mid-August, the Senate passed a bill introducing e-vignettes in the Czech Republic from 2021. Drivers will thus be able to pay for the use of some roads online or via a mobile application. Payments linked to a car’s registration number will be…
Clearer outline of tax on selected digital services
The Ministry of Finance has prepared a digital service tax bill, proposing a tax rate of 7% on selected digital services. Entities liable to this tax will be companies included in corporate groups having a worldwide turnover of more than EUR 750…
Cross-border transaction reporting duty is heading to Chamber of Deputies
An amendment to tax legislation for 2020, also covering the implementation of DAC 6, is heading to the Chamber of Deputies. It introduces a new information duty regarding cross-border arrangements. The latest draft amendment includes new changes…
Quick fix revolution at hand. What will affect companies the most?
In a couple of months, intra-community supplies will undergo radical changes to the VAT regime, probably the most significant ones in recent history. The mechanism of applying VAT on consignment (call-off) stock arrangements will change entirely:…