Case law
CJEU: tax administrator may also refund wrongly charged VAT
The Court of Justice of the European Union (CJEU) ruled in Case C-453/22 that a taxpayer has the right to demand from a tax administrator a refund of VAT that a supplier has wrongly charged to the taxpayer and will not return due to the statute of…
Marketing services from VAT perspective
In its recent judgment, the Supreme Administrative Court (SAC) dealt with the question of whether a distribution of pharmaceuticals and marketing services constitute a single supply for VAT purposes.
SAC: Is it always possible to depreciate a movable item separately?
In judgment 8 Afs 229/2021-52, the Supreme Administrative Court (SAC) concluded that a technology such as a stationary power plant is a technical improvement to a building with which it forms a single functional unit and not a separate movable item.…
SAC on proving conscious involvement in tax fraud in chain of supplies
The Supreme Administrative Court (SAC) has dealt with denying the right to deduct VAT to a company on the grounds of it being knowingly involved in VAT fraud. In its judgment, the court summarised the relevant case law for assessing VAT fraud.
SAC’s view on parent company orders
Any influencing of an uncontrolled transaction by a related party, usually a parent company, is regarded by the tax authorities as a parent company’s orders. This may be, e.g., a parent company ordering a subsidiary to sell goods to that…
Until when can additional tax return for lower tax be filed?
The extended chamber of the Supreme Administrative Court (SAC) has ended a long-standing dispute between the financial administration and taxpayers regarding the deadline for filing an additional tax return for lower tax. In doing so, the SAC sided…
Abuse of rights in real estate leases and VAT
The Municipal Court in Prague ruled on the distinction between leases of real estate and accommodation services, and its implications for VAT treatment. The court concluded that the case in question involved an abuse of rights.
Proving management services and legitimate expectations
In August, the Supreme Administrative Court closed a case concerning the tax deductibility of management services. It explained in detail the taxpayer's obligations when proving services and what the taxpayer can reasonably expect with respect to…
VAT treatment of unauthorised electricity consumption
In Case C-677/21 Fluvius Antwerpen, the Court of Justice of the European Union (CJEU) ruled on whether a supply of electricity that is unvoluntary and a result of a third party’s unlawful conduct constitutes a taxable supply of electricity carried…
SAC: advertising services and the right to deduct VAT
In judgment 8 Afs 111/2022–36, the Supreme Administrative Court (SAC) assessed how far a taxpayer had discharged their burden of proof in a case involving received advertising services that were to be rendered within motorcycle races, among other…
SAC sides with labour inspectorate on simpler checks of illegal outsourcing
Disguised employment mediation, i.e., the renting of labour without a labour agency licence, is the most frequent labour-law offence of recent times. It is relatively new, and both parties involved – the ‘pseudo’ agency and the customer using the…
SAC: Social events for clients not tax deductible
A company organised a meeting with clients to celebrate the anniversary of its foundation, with an accompanying programme titled "20 years – client event – social gathering – the priority is to relax, enjoy and try interesting activities". The…