Case law
CJEU on rejecting application for VAT refund
The Court of Justice of the European Union (CJEU) has held that the one-month time limit for submitting additional information in the proceedings for a VAT refund is not a limitation period. If national legislation does not allow new evidence to be…
SAC on tax treatment of sale of unfinished real estate and related project
The Supreme Administrative Court (SAC) dealt with the tax deductibility of costs related to a development project upon the sale of unfinished real property. The tax administrator did not recognise most of the costs as tax relevant, and the Supreme…
CJEU: supplies provided within VAT group not subject to tax
In case C 184/23 Finanzamt T, the CJEU dealt with a dispute between the German tax administration and a foundation governed by public law. In the same case, judgment C 269/20 had already been delivered, which dealt with a VAT group and the supplies…
Statutory representatives liable for a corporation's tax arrears?
In a recent judgment (10 Afs 4/2024-38 of 18 June 2024), the Supreme Administrative Court (SAC) dealt with a case in which the tax authority turned to the statutory representative of a corporation on the grounds of his liability. Although the Tax…
Amortisation of valuation differences arising on company transformations part of…
The Supreme Administrative Court (SAC) has issued a judgment that may mark a change in the understanding of valuation differences arising on company transformations. Can we expect that Czech administrative courts will take the economic reality into…
Supreme Administrative Court defends taxpayer’s acquisition structure
The Supreme Administrative Court rejected the tax administration's view that the purchase of a share in a corporation financed by a loan and the subsequent merger to transfer the loan to the newly acquired operating entity constituted an abuse of…
CJEU on fixed establishment for VAT purposes
In case C 533/22 SC Adient Ltd & Co. KG, the CJEU confirmed its earlier conclusions regarding the origination of a fixed establishment for VAT purposes. In the present case, as in cases C 232/22 Cabot Plastics and C 333/20 Berlin Chemie, the court…
SAC’s Grand Chamber clarifies formal requirements for power of attorney
The Grand Chamber of the Supreme Administrative Court has clarified certain aspects of granting a power of attorney for representation in proceedings before state authorities. The SAC pointed out that there are no stricter requirements for the…
CJEU: free-of-charge supply of heat subject to VAT
The Court of Justice of the EU (CJEU) has ruled that the supply of heat free of charge is subject to VAT whether or not the recipient uses it to carry out economic activities. To determine the taxable amount, the cost price must include both direct…
SAC on determining reference price
In assessing transfer prices, the Supreme Administrative Court (SAC) emphasised that it is necessary to distinguish between a hypothetical estimate supported by logical and rational reasoning and economic experience on the one hand, and a…
Interest on retained VAT deduction: SAC verdict closes another chapter
In its recent judgment, the Supreme Administrative Court (SAC) has ruled that the statutory rate of interest on retained VAT deductions for the 2017 to 2020 period was in line with EU law. This dashed the hopes of many taxpayers who following a…
SDEU: prepaid cards single-purpose vouchers for VAT purposes?
In its judgment, the Court of Justice of the European Union (CJEU) held that prepaid cards constitute single-purpose vouchers if the place of supply and the VAT due are known at the time of issue. The CJEU further concluded that transfers of multi…