Case law
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…
SC further tightens conditions for withdrawal from non-compete clause
The recent Supreme Court (SC) judgement marks a further tightening of conditions for employers who decide to withdraw from a non-compete clause negotiated with their employee. According to the judgment, arrangements that give the employer the option…
French court outlines new permanent/fixed establishment concept for digital sector
The court’s decision brings an entirely new view on a permanent/fixed establishment for companies operating in a digital sector. Will other EU member states also get inspired?
SAC on existence of a permanent establishment
In its recent decision, the Supreme Administrative Court (SAC) dealt with selected facts giving rise to a foreign entity’s permanent establishment in the Czech Republic. In particular, the court pointed out that the tax administrator must produce…
SAC on proving indirect shareholding expenses
The Supreme Administrative Court (SAC) has recognised that it is not easy to prove the exact amount of overhead (indirect) expenses related to holding a share in a subsidiary. However, this practical pitfall does not change the fact that if a…
Watch out for the deadline for filing additional tax returns
In its recent decision, the Supreme Administrative Court (SAC) confirmed that the deadline for filing additional tax returns for a lower tax liability is based on a subjective lapse period – in other words, after that period expires, it is no longer…
VAT stated in a tax document for a fictitious transaction must be paid
In 8 Afs 21/2014-30 case, the Supreme Administrative Court (SAC) corrected the regional court’s interpretation of Section 108(4)(f) of the VAT Act. The provision stipulates that the person issuing a tax document indicating tax is also obliged to…
Prevention of double taxation: SAC deals with mutual agreement procedure between…
The Supreme Administrative Court (SAC) has held that it is not for a court to determine whether any agreement concluded with another contracting state under a double tax treaty is invalid.
Holdings: do failed investments and changes in use of inputs lead to correction of…
At the beginning of November, the Court of Justice of the European Union (CJEU) ruled in the case of a Portuguese holding company which intended to acquire another company, but the transaction did not ultimately materialise. The Court was dealing…