Case law
Case law sets boundaries for determining local real estate tax coefficients
If a municipality decides to introduce a local coefficient for specified real estate, since 1 January 2025 it has been required to do so by means of a measure of a general nature. The first wave of court disputes already sheds light on the…
Constitutional Court reiterates obligation to address new arguments in tax dispute
The Constitutional Court set aside a judgment of the Supreme Administrative Court (SAC) concerning the tax deductibility of interest between related parties. According to the Constitutional Court, the SAC failed to address adequately the taxpayer’s…
SAC: stricter interpretation of conditions for residence under ‘other’ category
In its recent judgment (2 Azs 64/2024), the Supreme Administrative Court confirmed that the purpose of residence under the ‘other’ category must have a sufficiently strong, close and genuine connection to the Czech Republic. The mere fact that a…
SAC on obligation to pay VAT stated in invoice
The Supreme Administrative Court (SAC) considered whether VAT stated in an invoice must be paid even where the invoiced supply is fictitious. It confirmed that the decisive factor is not the mere statement of VAT in the invoice but the existence of…
Reserve accounts for repairs of tangible assets under SAC scrutiny
In a recent judgment, the Supreme Administrative Court (SAC) commented on the conditions for the tax deductibility of provisions for repairs of tangible assets. In its decision, it followed existing case law and confirmed a strict approach to…
Supreme Administrative Court on proving right to deduct VAT on subcontracted supplies
Is an invoice and a contract enough to prove the right to deduct VAT? In its recent judgment, the Supreme Administrative Court (SAC) concluded that they are not. If the tax administrator challenges the scope or nature of the services received, the…
Supreme Administrative Court denies customs duty refund due to late filing
The deadline for applying for a customs duty refund is fixed. This was confirmed by a recent judgment of the Supreme Administrative Court (SAC), reminding importers that, in the event of disputes with suppliers, they must act in time.
EU General Court: VAT group membership and transfer of VAT exemption conditions
In judgment T-444/25, the General Court of the EU answered a question referred for a preliminary ruling concerning the transfer of conditions for VAT exemption between individual members of a VAT group. It confirmed that a membership in a VAT group…
SAC on proving management services within a holding group
In judgment 8 Afs 164/2025-40, the Supreme Administrative Court (SAC) examined how specifically the tax administrator must formulate their doubts and what evidence a taxpayer must provide when claiming costs of services provided within a corporate…
SAC: Application for exemption from income tax on royalties is not time-limited
The Supreme Administrative Court (SAC) has changed its previous interpretation concerning the time limit for filing an application for exemption from income tax on royalties. Following a preliminary ruling by the Court of Justice of the European…
EU General Court addresses VAT exemption for loan management
Does a VAT exemption apply where a credit provider has sold loans to another person but has retained their management and charges a fee for that? According to the General Court of the EU, it does not. Since the original provider is no longer in the…
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…