Case law
CJEU gives precedence to national legislation over concept of principal and…
A recent judgment of the Court of Justice of the European Union (CJEU), arising from disputes in Germany, shows that an “all-inclusive” package may be split into a part subject to the reduced rate and a part subject to the standard rate, without…
CJEU on VAT treatment of transfer pricing adjustments
The Court of Justice of the European Union (CJEU) has ruled on a case concerning transfer pricing in relation to vehicle repairs. According to its judgment, a transfer pricing adjustment does not constitute consideration for a supply of services…
SAC on taxation of travel allowances for foreign employees
In a recent judgment, the Supreme Administrative Court (SAC) addressed the question of which travel allowances paid to foreign employees on business trips to the Czech Republic may fall outside the scope of income tax.
SAC on limits for monitoring employees’ electronic communication
Checking business emails and other work-related electronic communications does not have to be automatically impermissible. However, in its recent judgment, the Supreme Administrative Court (SAC) clearly showed that employers are operating in a…
SAC: When does advance payment trigger obligation to declare VAT?
In a recent judgment, the Supreme Administrative Court (SAC) held that the obligation to declare VAT on a received advance payment arises when, as of the date the advance payment is received, the taxable supply is known with sufficient specificity.…
CJEU: input VAT deduction for mandatory hospital equipment depends on its actual use
The Court of Justice of the EU (CJEU) confirmed that input VAT deduction for healthcare providers depends on the asset’s actual use, not on the fact that its acquisition is required by law. According to the CJEU, the decisive factor is always a…
CJEU: VAT treatment of loyalty points
In its recent judgment in Case C 436/24 Lyko Operations, the Court of Justice of the European Union (CJEU) held that points awarded under a customer loyalty scheme do not constitute “vouchers” pursuant to the VAT Directive where their use is…
SAC: international hire of labour (IHOL) seen as possible indication of order by…
In its recent judgment, the Supreme Administrative Court (SAC) upheld the tax authority’s conclusion regarding the existence of control by the parent company, agreeing with the argument that the subsidiary’s management consisted predominantly of…
SAC sides with taxpayer in appeal against VAT registration decision
In its recent ruling, the Supreme Administrative Court (SAC) stated that if an entrepreneur is unsure whether they meet the conditions for VAT registration, they may file an application for registration as a precautionary measure, pay the tax, and…
SAC on tax deductibility of expenses for lawyer’s lump-sum fee
The lump-sum nature of a lawyer’s fee does not in itself give rise to a different or less stringent standard of proof in tax proceedings, the Supreme Administrative Court (SAC) found in its judgment 3 Afs 262/2024–41. It also pointed out that…
SAC: new judgments on substantive and temporal connection
In recent months, the Supreme Administrative Court (SAC) has issued several noteworthy rulings, all of which underline the importance of establishing a clear substantive and temporal connection between claimed expenses and the relevant taxable…
EU General Court on right to deduct VAT one month earlier fundamentally changes…
The EU General Court has issued an important decision (T 689/24) on VAT deduction, which has a fundamental impact on the practice of taxable entities and the creation of national legislation. The court addressed the question of whether it is…