Case law
Emails need not be signed with guaranteed electronic signature
Is it necessary for emails to bear a guaranteed electronic signature or is it sufficient if only an attached submission bears such a signature? The Constitutional Court opted for the latter and thereby further relaxed the rules of electronic…
Contractual autonomy: Can expert determine discount on purchase price?
Can contracting parties agree that a discount on a purchase price shall be determined by an expert? This question was recently addressed by the Supreme Court of the Czech Republic. In the article below, read how the court ruled and what it means for…
SAC: standard of loss and tax deductibility
In its July 2025 judgment 1 Afs 77/2025-74, the Supreme Administrative Court (SAC) dealt with the appropriateness of and change to a standard loss rate set by a taxpayer and with the offsetting of shortages and surpluses across different types of…
CJEU: liability for unpaid tax and denial of VAT deduction applied simultaneously
In its recent judgment, the Court of Justice of the European Union (CJEU) held that in the event of tax fraud, it is possible to deny the right to deduct VAT and at the same time apply joint and several liability for tax not paid by the supplier.
Supreme Administrative Court on beneficial owner of royalties
The tax administrator disputed foreign distribution companies as the beneficial owners of royalties and regarded them as mere intermediaries, therefore refusing the application of withholding tax in the amount under the double tax treaties based on…
CJEU: VAT perspective on supply of services to subsidiaries
In a recent judgment, the Court of Justice of the European Union (CJEU) addressed whether a supply of several partial services by a parent company to a subsidiary in the context of active management constitutes a single supply. The CJEU concluded…
Advocate General comments on VAT treatment of tooling
The Advocate General of the Court of Justice of the European Union (CJEU) has confirmed the current approach to the VAT treatment of the sale of tooling (moulds), whereby it is a supply of goods without transport and therefore a taxable supply at…
Supreme Court: Chanel can choose its distributors
Chanel, a French luxury cosmetics and perfumes manufacturer, has for many years been involved in a legal dispute with the Czech company Notino. The subject of the dispute was Notino's obligation to provide information on the origin of Chanel’s…
Municipal court: VAT and gratuitous supply of land
The Municipal Court in Prague stated in its judgment that the tax base upon a contribution of land into a business company is its residual value if the right to deduct VAT was at least partially claimed upon its acquisition.
Supreme Court: landmark decision on termination of employment of foreigners
Czech legislation sets strict conditions for the employment of foreigners, especially from non-EU countries. Failure to comply with these conditions may result in fines of up to CZK 10 million and other negative consequences. Nonetheless, this…
Assignment of receivables secured by pledge agreement
The Supreme Court of the Czech Republic dealt with whether an assignment of a receivable arising from a secured obligation also transfers the ancillary clauses of the pledge agreement, e.g. the right to demand a contractual penalty, to the new owner.
Supreme Court: Can blank promissory note be redeemed?
In resolution No. 29 Cdo 2073/2022, the Supreme Court of the Czech Republic has taken the view that it is possible for a blank promissory note to be redeemed, i.e. reestablished in court.