Case law
SAC on VAT deduction: Who can dispose of goods as their owner?
The Supreme Administrative Court has ruled on a case concerning the purchase and subsequent sale of goods that remained in the warehouse of a supplier who had been duly authorised to resell them. The merit of the dispute was whether the taxpayer had…
What to watch out for when preparing documents to claim R&D allowance
Even though R&D-related legislation may appear unchanged, in 2023, tax administrators may no longer accept approaches applied in prior years. Last year’s case law showed that project objectives, documentation, and evaluation should be as specific as…
CJEU challenges transaction benefiting from simplified procedure for triangular…
The Court of Justice of the EU ruled on the use of the simplified procedure for triangular transactions. If documents issued by the middle party under the scheme do not comply with the VAT Directive, the scheme cannot be used, according to the court.
CJEU: Is it necessary to pay VAT stated in tax document?
The Court of Justice of the European Union has refuted the Austrian court's belief that any person who indicates tax on a tax document is liable to pay that tax. If the service recipients are only end costumers not entitled to deduct VAT,…
Proving services provided by parent company and principle of legitimate expectation
In recent judgment No. 30 Af 57/2021-76, the Regional Court in Brno reminded us how important robust documentation of services is in defending the tax deductibility of expenses. The core of the dispute involved a taxpayer claiming in their income…
Regional Court on deductibility of interest on acquisition loan and abuse of law
In judgment 55 Af 4/2020–137, the Regional Court in Prague dealt with a company that claimed interest on a bank loan for the purchase of a share in a Czech company with which it was subsequently to merge by acquisition. The loan was provided by an…
SAC on proving identity of customer from another member state
The Supreme Administrative Court (SAC) has referred a preliminary question to the Court of Justice of the EU whether it is possible to deny the right to VAT exemption of supplies of goods to another EU member state if the supply to a specific…
CJEU on the right to deduct VAT if supplier pretends to be another person
The Court of Justice of the European Union (CJEU) recently ruled that taxpayers involved in tax fraud shall be denied the right to deduct VAT in full, even if the loss of tax revenue (tax evasion) is lower.
Court agrees: bonds issued under commission agency agreement not to be included in…
The court agreed with our tax litigation team in a dispute concerning thin capitalisation rules. When applying the test, the economic substance of the credit relationship should be taken as a basis – the bonds issued for unrelated investors under a…
CJEU on awarding free-of-charge vouchers to employees
The provision of vouchers to employees free-of-charge does not always mean an obligation to pay output VAT on the transactions. The CJEU (C-607/20) drew attention to the possibility of employers providing them as part of their economic activity,…
Disguised legal act in payment of dividend to beneficial owner
In its recent judgment, the Supreme Administrative Court (SAC) dealt with a profit distribution payment to a Cypriot company. After assessing the entire context of previous transactions, the SAC held that the actual status had been disguised and…
CJEU on disclosure of beneficial owner information
In EU member states, the legal regulation of beneficial owners and their registration is based on the AML Directive. Under the directive, information on beneficial owners within the territory of member states should be accessible to any member of…