Case law
SAC refuses right to deduct VAT on acquisition of movable assets after business…
The Supreme Administrative Court (SAC) rejected a cassation complaint filed by a taxpayer in a dispute concerning a refusal of the right to deduct VAT on an acquisition of movable assets followed by a purchase of a business establishment from the…
SAC comments on invoicing services containing tax non-deductible expenses
The Supreme Administrative Court (SAC) confirmed that tax non-deductible expenses cannot be treated as deductible solely on the grounds that the taxpayer invoiced them plus a profit mark-up to the parent company for the provision of services.
SAC: right to deduct input VAT always to be proved by the taxpayer
In a case involving an entity providing both taxable health services and services exempted from tax without the right to deduct, the Supreme Administrative Court (SAC) dealt with proving the link between the right to deduct and a specific output…
Transfer pricing: otherwise related persons and arm’s length price
The Supreme Administrative Court (SAC) has recently closed several cases dealing with the assessment of otherwise related persons - a concept from the area of transfer prices between group companies.
SAC yet again stands up for taxpayers
The Supreme Administrative Court (SAC) has confirmed that a payment to an unpublished bank account does not in itself give rise to the taxable supply recipient’s liability for unpaid VAT. It is always necessary to also prove that the taxpayer knew…
SAC: exchange of shares upon capital increase from own sources interrupts time test
The Supreme Administrative Court (SAC) has unambiguously concluded that the time test for exempting proceeds from the sale of securities from personal income tax is considered interrupted by an exchange of shares resulting from an increase in the…
Beneficial owner of interest and silent partnership
The Supreme Administrative Court dealt with beneficial ownership of interest in the context of the existence of a silent partnership agreement.
Intermediation in sale of extended warranties not to be excluded from coefficient…
The Court of Justice of the EU (CJEU) denied the full entitlement to VAT deduction to a company providing extended warranties during sales of goods. The sale of extended warranties may not be treated as a financial activity, ruled the court.
Lease of real estate via Airbnb considered business activity
The Municipal Court in Prague confirmed that the provision of short-term leases via Airbnb meets the criteria of a business activity. Consequently, income from this activity shall be included in a separate tax base as income from an independent…
SAC stands up for taxpayer over deducting costs of destroyed goods
The Supreme Administrative Court (SAC) upheld a taxpayer's cassation complaint in a dispute over the legitimacy of claiming costs/expenses for destroyed goods. According to the SAC, without informing the appellant the appellate body assessed the…
Denying right to deduct VAT before entering bankruptcy compatible with EU directive?
The Court of Justice of the European Union (CJEU) has dealt with the refusal of the right to deduct VAT on taxable transactions carried out by a Romanian company before entering insolvency proceedings.
Disposal costs of part of new assets’ input price?
With judgment No. 10 Afs 346/2020-43, the Supreme Administrative Court (SAC) has significantly contributed to clarifying when the costs of disposal of assets may be deducted from the tax base directly, and when they constitute investments and shall…