Case law
Questions surrounding VAT treatment of promotional events
In its recent judgement (No. 10 Afs 179/2020-56) the Supreme Administrative Court (SAC) concluded that a company that organised a promotional event was not entitled to the refund of input VAT on subcontracted supplies. According to the court, these…
SAC held issue of one-crown bonds abuse of law
In its recent judgment, the Supreme Administrative Court (SAC) dealt with the issue of one-crown bonds that effectively redirected a portion of funds from a cash pooling structure to one-crown bonds with long-term maturity. The court ruled that the…
SAC paves way for assessment of additional tax on transactions with unrelated parties
The Supreme Administrative Court has opened transfer pricing’s Pandora's box by allowing tax administrators to assess additional tax based on overall profitability not just for related-party transactions, but also for transactions with unrelated…
Overstepping search procedure boundaries may affect tax assessment deadline
In a recent decision, the Supreme Administrative Court commented on a tax administrator's overstepping of the boundaries of a search procedure, stating that the activity had in fact been a tax inspection. This had a major impact on the expiry of the…
VAT fixed establishments and foreign subsidiaries
The Court of Justice of the EU (CJEU) has dealt with the question of whether a parent company‘s VAT fixed establishment originates in another EU member state where its subsidiary is located and provides the parent company with marketing and other…
Interest on retained excess VAT deductions: SAC clarifies practice
In its current judgment, the Supreme Administrative Court (SAC) revisited the topic of interest on retained excess VAT deductions. This time, the court declared unlawful the practice whereby as of 1 July 2017 the tax administrator reduced the…
How to respond to inaction by tax administrator?
Proceedings before the tax authorities often take longer than taxpayers would like. However, like all proceedings before public administration authorities, these proceedings are subject to certain rules. In relation to tax proceedings, the Ministry…
What constitutes a tax inspection?
Recently, the Supreme Administrative Court (SAC) repeatedly commented on which tax administration procedures should be regarded as a tax inspection. The court’s answers may have a major impact on the success or failure of tax proceedings. The court…
Supreme Court on payment of advances for profit shares
In its recent judgment (No. 27 Cdo 3330/2020), the Supreme Court (SC) sheds light on the ambiguities concerning the payment of advances for shares in profit. Although the judgment concerns the Business Corporations Act as effective until 31 December…
Are warranty-period repairs services provided for consideration?
In the Suzlon Wind Energy Portugal case (C-605/20), the Court of Justice of the European Union (CJEU) dealt with the issue of re-invoicing warranty repair costs.
Duty to declare tax on one-time supplies paid in instalments
In Case C-324/20, the Court of Justice of the European Union addressed the question of when the duty to declare VAT occurs for one-time supplies paid for in instalments.
CJEU: Fees for registration for medical procedures may be exempt from VAT
The Court of Justice of the European Union has ruled on whether consultations on the prescription of medical procedures can be regarded as activities closely related to the provision of medical and healthcare services that are exempt from VAT.