Case law
SAC on simultaneous technical improvement and repair of real property
In the tax administrator’s opinion, a company carrying out extensive structural modifications to a real property should treat all the work collectively as a technical improvement, and not part of it as repairs. The Supreme Administrative Court …
SAC’s landmark verdict on deadline for assessing tax
The extended chamber of the Supreme Administrative Court (SAC) has dealt with the conflict between the new and old legal regulation of tax assessment deadlines. The SAC opposes existing case law according to which the 10-year time limit for tax…
Constitutional Court on concurrence of executive service agreement and employment…
The Constitutional Court confirmed that a management contract should be treated as an amendment to an executive service agreement subject to approval by the general meeting. If not approved, a usual remuneration shall be payable for the performance…
SAC on actual supplier of gas on virtual trading point
The Supreme Administrative Court (SAC) has dealt with a case of determining a gas supplier when trading in this commodity on a virtual trading point in Germany. The SAC confirmed that the supplier was the person that declared themselves as the…
May tax administrators use traffic camera information on vehicle movements?
Following the Constitutional Court’s intervention, the Supreme Administrative Court (SAC) again assessed whether an administrator may for the purposes of specific tax proceedings request records on the movement of a vehicle from the Police of the…
CJEU on application of tax rate for selected beverages
The VAT Directive does not prevent member states from applying a reduced rate to selected goods and services. One of the possible criteria for classifying goods into reduced rates is the customs nomenclature. Member states may use other…
SAC on interpretation of double tax treaties
When interpreting the text of an international treaty, it is necessary to follow primarily the general rules of interpretation, i.e., use linguistic, systematic, and teleological methods. The commentaries on the OECD Model Tax Convention can only be…
CJEU on gifts provided with magazine subscription
The Court of Justice of the European Union has ruled in the case of a Portuguese publisher that gifts provided with a magazine subscription constitute an ancillary supply accompanying the main supply. The gift must thus follow the tax treatment of…
SAC comments on VAT deduction on anti-radar and GPS logbooks
The Supreme Administrative Court upheld the tax administrator's opinion and disallowed the VAT deduction on the purchase of anti-radar equipment, as it was not used for economic activity and did not protect the taxpayer's property. The SAC also…
SAC: transfer of technical improvement after lease end regarded as service from VAT…
The Supreme Administrative Court (SAC) ruled on the question whether the transfer of technical improvements (carried out by a lessee at their own expense) to the lessor for compensation at the termination of the lease constitutes a service from the…
CJEU: tax administrator may also refund wrongly charged VAT
The Court of Justice of the European Union (CJEU) ruled in Case C-453/22 that a taxpayer has the right to demand from a tax administrator a refund of VAT that a supplier has wrongly charged to the taxpayer and will not return due to the statute of…
SAC: Is it always possible to depreciate a movable item separately?
In judgment 8 Afs 229/2021-52, the Supreme Administrative Court (SAC) concluded that a technology such as a stationary power plant is a technical improvement to a building with which it forms a single functional unit and not a separate movable item.…