Case law
SAC: Justifiable grounds for waiving penalties broader in practice than specified in…
In its recent judgment, the Supreme Administrative Court (SAC) held that, when interpreting justifiable grounds for waiving penalties for the failure to report exempt income, administrative bodies must examine the specific circumstances of each…
SAC on deadline for correcting the VAT amount and on appealing against implicit tax…
In a recent judgment, the Supreme Administrative Court (SAC) held that it is possible to correct the VAT amount within three years of the end of the taxable period in which the tax liability arose, whereas it is not possible to appeal against…
SAC: Substantiating the performance of R&D activities is essential to claim an R&D…
According to the Supreme Administrative Court (SAC), when proving the development activity for the purposes of claiming an R&D allowance, it must be clear from the evidence how existing knowledge or skills were systematically applied and tested to…
Is it possible to deduct VAT on induced investments?
The Court of Justice of the EU (CJEU) in the recent Mitteldeutsche Harstein-Industrie AG case (C-528/19) dealt with whether it is permissible to deduct input VAT on construction work carried out on a municipal road for the benefit of a municipality,…
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…
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…
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…
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…
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…
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…