Case law
Tax and IT services for investment funds – exempted from VAT?
The Court of Justice of the European Union (CJEU) yet again dealt with the question of which services provided to collective investment undertakings can be exempted from VAT. In joined cases C58/20 and C59/20, the court outlined the conditions under…
Constitutional Court more flexible on non-compete clauses in employment contracts
In May, the Constitutional Court dealt with the possibility of employers to withdraw from non-compete clauses. This court has a more liberal view of the matter than the Supreme Court which believes that an employer's withdrawal without giving a…
Limits to shareholder agreement validity regarding board member instructions
In Judgment No. 27 Cdo 1873/2019-336, the Supreme Court (SC) dealt with the validity of clauses in shareholder agreements, making a significant contribution to the abundant case law concerning the boundaries between business and strategic management.
Practical implications of the Supreme Court’s decision on determining the scope of…
Corporate law has been shaken up by Supreme Court Decision No. 27 Cdo 3549/2020 on the nullity of a corporation’s founding acts stipulating “production, trade and services not specified in Appendices 1 to 3 of the Trade Licensing Act” as its scope…
Mere rental of real property not a VAT fixed establishment
In case C-931/19 Titanium, the Court of Justice of the European Union (CJEU) ruled against the existence of a fixed establishment for VAT purposes solely on the grounds of renting real property without the presence of staff in the country where the…
CJEU on roaming services’ place of supply
In the case of SK Telecom Co. Ltd, No. C-593/19, the Court of Justice of the EU (CJEU) dealt with the determination of the place of supply for roaming services, following the rule of effective use and enjoyment.
Tax deductibility of interest on acquisition loans in intragroup restructuring
The Municipal Court in Prague agreed with the tax administrator challenging the tax-deductibility of interest on an acquisition loan in an ‘intragroup’ restructuring.
CJEU on fuel cards once again
The Court of Justice of the European Union (CJEU) denied the right to deduct VAT on fuel to a taxable person who provided fuel cards to transport companies; the CJEU thus confirmed the conclusions formulated in judgment C-235/18 Vega International.
Is additional tax assessment due to VAT fraud reason enough not to waive penalties?
If the tax administrator concludes that a VAT payer has even indirectly been involved in VAT fraud (typically, by having accepted a delivery affected by fraud), the entitlement to VAT deduction will be withheld from the payer. The payment of…
CJEU: Supplies between head office as part of VAT group and foreign branch subject…
The Court of Justice of the European Union (CJEU) issued its long-awaited decision in the Danske Bank case (C812/19) and clarified the relationship between a foreign branch and its head office that is part of a VAT group. Six and a half years after…
CJEU on reduction of taxable amount on provision of indirect bonuses
In C-802/19, the Firma Z case, the Court of Justice of the EU (CJEU) opined on the treatment of indirect bonuses provided to end customers where goods had originally been delivered to another member state as supplies exempt from VAT with entitlement…
Remuneration for making funds available using promissory note VAT exempt?
In judgment C 801/19 FRANCK, the Court of Justice of the European Union (CJEU) held that remuneration for the transfer of funds provided by a factoring company to a debtor is, from a VAT perspective, a transaction in securities, therefore exempt…