Case law
Taxpayers entitled to interest on interest
The possibility of charging interest on outstanding interest in tax disputes was subject to several conditions formulated mainly in the Supreme Administrative Court's judgment in the ERAMENT Trading case. However, the recent Constitutional Court’s…
Preliminary question for CJEU: is minimum technical equipment overhead cost?
The Supreme Administrative Court (SAC) referred to the Court of Justice of the EU (CJEU) the preliminary question whether the minimum technical equipment (in this case, defibrillators purchased by a hospital) can be considered general (overhead)…
SAC on claiming R&D allowance
In its recent judgment, the Supreme Administrative Court (SAC) has addressed whether to allow claimed research and development (R&D) allowances. In the relevant case, the tax administrator disallowed these costs on the grounds that the basic…
Proving costs of light advertising
The Supreme Administrative Court (SAC) dealt with the tax deductibility of costs incurred for advertising that broadcast a video spot on a LED screen. The tax administrator had doubts about the spot’s broadcasting frequency and assessed the costs as…
Time factor and standard of proof in tax inspection
In its recent judgment, the Supreme Administrative Court (SAC) dealt with the issue of proving the right to deduct VAT on supplies of assembly work and the amount of evidence that the tax administrator may require considering the time elapsed…
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…