Tax & Legal Update

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:…

Stricter rules for investment incentives in effect

An amendment to the Act on Investment Incentives has been promulgated in the Collection of Laws and will enter into effect on 6 September 2019. According to the amendment, projects will be subject to governmental approval. Without it, investment…

Latest News, August 2019

Last month’s tax and legal news in a few sentences.

Time period for providing additional information to a tax refund application not a…

The Court of Justice of the EU (CJEU) ruled in the case of Sea Chefs Cruise Services GmbH (C-133/18) that the one-month period to provide additional information to an application for tax refunds is not a limitation (lapse) period. What does this…

Supervisory board member a taxable person for VAT purposes

Last month, the Court of Justice of the European Union (CJEU) dealt with the question whether a member of a foundation’s supervisory board is a taxable person for VAT purposes. In the case in question, the supervisory board member did not act in…

Passengers entitled to compensation also for delays of flights operated by a non-EU…

Mid July 2019, the Court of Justice of the EU (CJEU) dealt with the issue of claiming compensation for a significant delay of a flight operated by a non-EU carrier. When two connecting flights are booked by a single reservation with an EU-based…

Court explains the treatment of tax (non-) deductible expenses before 2015

The Municipal Court in Prague recently (10Af 60/2018 - 46-53) dealt with the applicability of Section 24(2)(zc) of the Income Tax Act as amended effective 1 January 2015 to taxable periods before 2015.