Case law
SAC on limits for monitoring employees’ electronic communication
Checking business emails and other work-related electronic communications does not have to be automatically impermissible. However, in its recent judgment, the Supreme Administrative Court (SAC) clearly showed that employers are operating in a…
SAC: When does advance payment trigger obligation to declare VAT?
In a recent judgment, the Supreme Administrative Court (SAC) held that the obligation to declare VAT on a received advance payment arises when, as of the date the advance payment is received, the taxable supply is known with sufficient specificity.…
CJEU: input VAT deduction for mandatory hospital equipment depends on its actual use
The Court of Justice of the EU (CJEU) confirmed that input VAT deduction for healthcare providers depends on the asset’s actual use, not on the fact that its acquisition is required by law. According to the CJEU, the decisive factor is always a…
CJEU: VAT treatment of loyalty points
In its recent judgment in Case C 436/24 Lyko Operations, the Court of Justice of the European Union (CJEU) held that points awarded under a customer loyalty scheme do not constitute “vouchers” pursuant to the VAT Directive where their use is…
SAC: international hire of labour (IHOL) seen as possible indication of order by…
In its recent judgment, the Supreme Administrative Court (SAC) upheld the tax authority’s conclusion regarding the existence of control by the parent company, agreeing with the argument that the subsidiary’s management consisted predominantly of…
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 on tax deductibility of expenses for lawyer’s lump-sum fee
The lump-sum nature of a lawyer’s fee does not in itself give rise to a different or less stringent standard of proof in tax proceedings, the Supreme Administrative Court (SAC) found in its judgment 3 Afs 262/2024–41. It also pointed out that…
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…