Case law
Proving management services and legitimate expectations
In August, the Supreme Administrative Court closed a case concerning the tax deductibility of management services. It explained in detail the taxpayer's obligations when proving services and what the taxpayer can reasonably expect with respect to…
Abuse of rights in real estate leases and VAT
The Municipal Court in Prague ruled on the distinction between leases of real estate and accommodation services, and its implications for VAT treatment. The court concluded that the case in question involved an abuse of rights.
SAC: advertising services and the right to deduct VAT
In judgment 8 Afs 111/2022–36, the Supreme Administrative Court (SAC) assessed how far a taxpayer had discharged their burden of proof in a case involving received advertising services that were to be rendered within motorcycle races, among other…
VAT treatment of unauthorised electricity consumption
In Case C-677/21 Fluvius Antwerpen, the Court of Justice of the European Union (CJEU) ruled on whether a supply of electricity that is unvoluntary and a result of a third party’s unlawful conduct constitutes a taxable supply of electricity carried…
SAC sides with labour inspectorate on simpler checks of illegal outsourcing
Disguised employment mediation, i.e., the renting of labour without a labour agency licence, is the most frequent labour-law offence of recent times. It is relatively new, and both parties involved – the ‘pseudo’ agency and the customer using the…
SAC: Social events for clients not tax deductible
A company organised a meeting with clients to celebrate the anniversary of its foundation, with an accompanying programme titled "20 years – client event – social gathering – the priority is to relax, enjoy and try interesting activities". The…
CJEU on adjustments of VAT deductions for written off goods
The Court of Justice of the European Union (CJEU) ruled on adjusting input VAT deductions for written off goods no longer usable due to wear and tear, defects, and obsolescence. The taxpayer defended not adjusting the VAT deduction for written off…
Transfer pricing perspective on business model changes
The Supreme Administrative Court (SAC) examined whether the tax administrator had correctly set the reference price of services provided between related parties following a change in the business model, and sided with the taxpayer.
SAC on received intra-group services
In judgment 10 Afs 93/2021–69, the Supreme Administrative Court (SAC) ruled on the tax deductibility of costs (expenses) incurred by a company for services provided by the group. In the tax administrator’s opinion, the company failed to support what…
CJEU on the VAT treatment of electricity supplies from charging stations
In its recent judgment, the Court of Justice of the European Union (CJEU) held that the charging of electric vehicles and the provision of related services constitute a complex transaction consisting of a supply of goods.
SAC on calculation of reduction coefficient upon sale of land
The Supreme Administrative Court (SAC) dealt with a case in which a sale of land was excluded from the calculation of the reduction coefficient. The taxpayer had sold land that they considered and accounted for as fixed assets. The tax administrator…
CJEU on the VAT treatment of real property sales
In judgment C-239/22, the Court of Justice of the EU (CJEU) specified that the criterion of ‘first occupation’ of immovable property means the first use of the property by its owner or tenant. The application of VAT to the sale of the property then…