Case law
SC: Employers' responsibility for occupational health and safety extends to…
The employer's obligation to ensure occupational health and safety (OHS) is traditionally perceived as an obligation towards their employees. However, in a recent landmark decision, the Czech Supreme Court confirmed that an employer's obligation to…
CJEU: supply of components and supply of equipment for their manufacture not a…
Are the supply of components (products) and the supply of equipment necessary for their manufacture a single supply subject to the same VAT treatment? According to a judgment of the Court of Justice of the European Union (CJEU), no. Since the…
SAC on conditions for depreciation of technical improvements to real estate
The Supreme Administrative Court (SAC) has addressed under what conditions building alterations to real estate can be considered technical improvements eligible for tax-deductible depreciation. The court concluded that depreciation can only be…
Factoring commissions and arrangement fees are subject to VAT
The Court of Justice of the European Union (CJEU) has confirmed that factoring services, whether in the form of the sale of debts or financing secured by a pledge of debts, constitute taxable supplies. Both commissions for providing financing and…
Burden of proof when changing valuation of internally produced inventories
A recent ruling by the Supreme Administrative Court (SAC) dealt with proving a change in an accounting method regarding valuation of internally produced inventories, and its impact on the tax base. The ruling provides important conclusions for…
SAC rules on right to deduct VAT on fixed service fee
According to the Supreme Administrative Court (SAC), it is possible to claim a VAT deduction also for received services that were invoiced at a fixed monthly fee. The fact that the fee was agreed in this manner is not a fundamental obstacle to…
CJEU on VAT treatment of Czech ‘society’ without legal personality
The Advocate General of the Court of Justice of the European Union (CJEU) has issued an opinion on case C-796/23 Česká síť s.r.o, focusing on determining the taxable person who performed the supply and is liable to pay value added tax in the context…
How to correctly treat building land from VAT perspective
The issue of VAT on the sale of real estate, especially land, often causes confusion and leads to different interpretations. A recent ruling by the Supreme Administrative Court (SAC) provides guidance on how to determine whether the sale of land is…
SC: Share ownership dispute has no place in proceedings to redeem (reestablish)…
The Supreme Court has clearly defined the limits of the procedure to redeem (reestablish) lost or destroyed shares in court. If a dispute over ownership arises, the court may not decide who owns the shares in these proceedings. Lost or destroyed…
CJEU: Romanian windfall tax compatible with EU law
The CJEU has confirmed that the Romanian windfall tax imposed on renewable energy producers between November 2021 and March 2022 is not contrary to the rules governing the functioning of the European energy market and climate targets as defined by…
SAC: application of double tax treaty to sale of domestic real estate business share
The Supreme Administrative Court (SAC) ruled that a Cypriot company’s income from the sale of a business share in a Czech company whose value consisted in more than 90 percent of real estate is subject to taxation in the Czech Republic.
SAC rules on tax non-deductibility of interest on intra-group financing
In its August 2025 judgement, the Supreme Administrative Court (SAC) revisited the non-deductibility of interest expenses on a loan that arose in the context of a corporate group's internal restructuring. The court assessed the taxation of interest…