Case law
CJEU rules on adjustment of deductions claimed for capital assets
What is the situation as regards the modification/correction of VAT deductions claimed on capital assets if their use changes? And what if the assets have not yet been used but their intended use has changed? These were some of the issues the Court…
CJEU approves French approach to regulating short-term leases
The Court of Justice of the European Union (CJEU) has sanctioned a French legal provision requiring in certain locations the prior authorisation by local authorities for short-term leases – typically leases arranged through digital platforms.
Landmark case-law: softer penalties for transfer prices incorrectly set by companies…
The Supreme Administrative Court (SAC) has issued a ground-breaking judgment for companies drawing investment incentives under older schemes. The court confirmed that the failure to meet the condition not to increase the tax base for calculating tax…
Supreme Court: same wage for same work in Prague and elsewhere
The Supreme Court (SC) ruled that a driver working in the regional town of Olomouc is entitled to the same wage as a driver working for the same employer and at the same position in Prague. According to the SC, external social and economic…
Italian Supreme Court applying beneficial ownership and abuse of right
In its July judgement, the Italian Supreme Court applied the principles formulated by the Court of Justice of the EU (CJEU) in the Danish cases clarifying certain preconditions for applying an exemption from withholding tax under the EU directive on…
Is it possible to correct tax base for claims not lodged in insolvency proceedings?
In Case C-146/19, the Court of Justice of the EU (CJEU) held that a creditor may adjust the VAT base for a claim not lodged in insolvency proceedings if they prove that the claim would have been irrecoverable even if it had been lodged in…
CJEU: Member states not obliged to act in concert
Transportation of goods sold to another member state in form of distance selling can be considered effected by the supplier or on its behalf also when the transport agreement with the carrier is concluded by the customer and the supplier plays an…
CJEU: Services associated with both taxable and exempt supplies may not be partially…
In the BlackRock Investment Management (UK) Ltd (C-231/19) case, the Court of Justice of the EU (CJEU) ruled on whether it is possible to treat a service provided via an IT platform used for both exempt and taxable supplies as a supply exempt from…
SAC: Special regulation of period for assessing tax overrides general regulation
The Supreme Administrative Court dealt with the relationship between the general regulation of the period for assessing tax under the Tax Procedure Code and the special regulation of the period under the Income Tax Act in respect of the commencement…
Compensation for unrealised service paid upon early contract termination subject to…
The Court of Justice of the EU (CJEU) held that the amount paid by customers upon early terminations of contracts should be considered part of the price for services and thus subject to VAT. The CJEU based its judgment primarily on the recent…
CJEU: supply recipient must correct a tax deduction even though the supplier did not…
The Court of Justice of the EU (CJEU) has answered the prejudicial questions concerning a Romanian company that corrected a previously claimed VAT deduction for just a part of the supplies received. In this respect, the CJEU held that national tax…
Pitfalls of managing transfer prices by means of marketing services
The Municipal Court in Prague confirmed the tax administrator’s approach reclassifying marketing services contracted and provided to abroad to ‘consideration received from a third party’. In the court’s opinion, the services were rendered directly…