Case law
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: 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…
Face recognition at airports gets green light from High Court
The High Court in Prague has authorised the use of an isolated system to monitor the premises of the Czech international airport. This is the first time that Article 5 of the AI Act has been applied in practice. The camera system uses artificial…
SAC on taxation of biogas in biogas stations
The Supreme Administrative Court (SAC) heard a dispute over whether biogas produced and consumed in a biogas station should be subject to gas tax. The SAC ruled in the affirmative
CJEU: airlines must refund ticket prices including agent’s commission
Airlines’ options to avoid paying compensation to passengers are becoming even more limited. A recent CJEU ruling states that if a flight purchased through an agent authorised to sell tickets for a given airline is cancelled, passengers may claim a…
SAC on investments made based on parent company’s decision
The Supreme Administrative Court (SAC) has ruled on a case in which a company with a limited functional and risk profile suffered a loss due to a change in its production portfolio. The SAC confirmed the tax administrator's conclusions that the…
Supreme Court: bank transfer as evidence of debtor's consent to debt repayment by…
Under certain conditions, a third party may also settle (repay) a debt on a debtor’s behalf. The Supreme Court has dealt with the question of when a creditor may refuse such settlement. Refusal to accept repayment from a third party may have a…
CJEU’s advocate general on VAT treatment of transfer pricing adjustments
VAT implications of transfer pricing adjustments depend on what the adjustment concerns and how it is carried out, according to the opinion (C-603/24) of Advocate General of the CJEU, Juliane Kokott.
EU General Court on application of simplification measure to triangular transaction…
The judgment of the General Court of the EU in the MS Ključarovci case (T-646/24) provides a more precise interpretation of the conditions for applying the simplification for triangular transactions under Article 141 of the VAT Directive. The…
SAC’s strict view on ‘Svarc’ system in Rohlik.cz case
The Supreme Administrative Court (SAC) has ruled that the couriers of online supermarket Rohlik.cz had been illegally working under the ‘Svarc’ system. It thus confirmed the decision of the lower courts, and the company must pay a fine of CZK 2.5…
CJEU rules on VAT treatment of Czech ‘society‘ without legal personality
The Tenth Chamber of the Court of Justice of the European Union (CJEU) ruled on case C-796/23 Česká síť s.r.o. It concerns the determination of the taxable person who performed a taxable supply and is obliged to pay value added tax in the context of…