Case law
SAC: proof of tax fraud not sufficient to deny entitlement to VAT deduction
Yet again, the Supreme Administrative Court (SAC) has dealt with a VAT fraud issue, in particular debating under what circumstances it may be concluded that a taxable supply recipient was or should and could have been aware of their involvement in…
CJEU dealt with assigning of transport in a Czech case
In a Czech case (Herst), the Court of Justice of the EU (CJEU) dealt with assigning intra-Community transport to a transaction in a situation where transportation was arranged by the last entity in a chain, and goods were purchased and resold…
Posting of workers from a VAT perspective
In practice, companies often do not pay enough attention to the possible implications of posting high-ranking managers to the Czech Republic to manage or supervise another group entity. A number of these arrangements meet the definition of a VAT…
Assessment of creditworthiness and its examination by courts according to CJEU
According to the judgement of the Court of Justice of the EU (CJEU), Czech laws imposing the obligation to invoke the nullity of a credit agreement on the grounds of an insufficient assessment of creditworthiness solely on the consumer are…
Transfer of tax residency within EU does not have to be tax neutral
The Supreme Administrative Court (SAC) has referred to the Court of Justice of the EU (CJEU) a prejudicial question whether Czech legislation disallowing to claim tax losses upon a change in the place of effective management within the EU is…
Medical telephone consultations VAT exempt
In German case No. C48/19, the Court of Justice of the EU (CJEU) answered whether medical services provided in a form of a telephone consultation are exempt from VAT.
Another Czech case before CJEU: is there entitlement to VAT deduction if the supply…
The Supreme Administrative Court (SAC) referred two prejudicial questions to the Court of Justice of the EU (CJEU) concerning entitlements to VAT deductions. In the case in question, the taxable supply recipient failed to support who had provided…
SAC rules against double taxation upon assignment of contractual sanctions
Regarding the assignment of contractual sanctions, the Supreme Administrative Court (SAC) determined what amounts should increase the tax base. According to the SAC, the tax base shall only be increased by the actual income from the assigned…
SAC opines on frequent tax inspection targets
In its recent judgment (7Afs 472/2018) the Supreme Administrative Court (SAC) confirmed the conclusions of a tax administrator and the Regional Court of Justice in Ústí nad Labem. The SAC opined on supporting the tax deductibility of advisory and…
Temporary assignment of an employee: provision of service for VAT purposes
The Court of Justice of the EU (CJEU) dealt with the Italian San Domenico Vetraria SpA case (C-94/19) where a parent company assigned one of its directors to its subsidiary on a temporary basis. For this, they ‘only’ charged their costs incurred for…
How to time resignation to comply with due managerial care
According to the Supreme Court (SC), members of a corporation’s elected body may resign from their offices and the corporation cannot stop them. However, if they do so at a time unsuitable for the corporation, they shall be liable for the damage…
‘Keeping of assets’ for investment incentive purposes – to own, or not to own?
The Supreme Administrative Court (SAC) held that to prove compliance with the condition of ‘keeping the assets’, it should suffice that the investment incentives recipients prove that the assets were kept in the supported region, regardless of the…