Case law
CJEU: conditions for denying right to deduct VAT if invoice includes fictitious…
The Court of Justice of the European Union (CJEU) dealt with the question of whether a recipient of a taxable supply in the reverse charge regime may be denied the right to deduct VAT if the invoice indicated a fictitious supplier.
Regional court: tax administrator erred in applying transfer pricing rules to…
The Regional Court in Hradec Králové sided with the taxpayer against a tax administrator who, without any basis in law, treated a part of a company's transactions with independent entities as controlled transactions. The tax administrator then…
Unequal pay: Constitutional Court rejects Czech Post's complaint
You may remember the case of a Czech Post driver who objected to his pay not being the same as that of a colleague in Prague. The Constitutional Court has now sided with the Supreme Court's decision that external social and economic conditions, such…
Court rejects possibility of increasing investment incentive tax credit through…
The Regional Court in Hradec Králové confirmed the tax administrator’s opinion that it is not possible to increase the insurmountable total of tax credits through discounting and thus effectively draw an investment incentive in a higher amount than…
Contributions to insurance company viewed as price reduction for VAT purposes
Judgment C-717/19 (Boehringer Ingelheim) dealt with a question of whether for VAT purposes, contributions paid to an insurance company for subsidised medicines constitute a reduction in the invoiced price. The Court of Justice of the European Union …
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.
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.
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…
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…
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: 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…