Case law
Taxpayer (yet again) fails to bear burden of proof regarding advertising services
The Supreme Administrative Court (SAC) ruled against the taxpayer and dismissed a cassation complaint in a dispute concerning the refusal of the right to deduct VAT on received advertising services. In the SAC’s opinion, if the extent of the supply…
Constitutional Court: employees deserve wages for on-call breaks
The Constitutional Court stood up for a firefighter from Ostrava airport. During his break from work, the firefighter had to remain ready to intervene even at the farthest point of the airport within three minutes. According to his employer, he was…
Interest on interest in tax proceedings
In its recent judgment, the Supreme Administrative Court confirmed that taxpayers are entitled to compensation for late declared and paid interest on the tax administrator's unlawful conduct – again, in the form of interest on the tax administrator…
CJEU: conditions for denying right to deduct VAT if invoice includes fictitious…
The Court of Justice of the European Union (CJEU) dealt with the question of whether a recipient of a taxable supply in the reverse charge regime may be denied the right to deduct VAT if the invoice indicated a fictitious supplier.
SAC once again restrains tax administrators from collecting tax, cost what it may
The Supreme Administrative Court has published a long-awaited judgment in the case of the pharmaceutical company ELI LILLY ČR, s.r.o., which concerned the invoicing of marketing and distribution costs. The company sought to achieve minimum…
Regional court: tax administrator erred in applying transfer pricing rules to…
The Regional Court in Hradec Králové sided with the taxpayer against a tax administrator who, without any basis in law, treated a part of a company's transactions with independent entities as controlled transactions. The tax administrator then…
Unequal pay: Constitutional Court rejects Czech Post's complaint
You may remember the case of a Czech Post driver who objected to his pay not being the same as that of a colleague in Prague. The Constitutional Court has now sided with the Supreme Court's decision that external social and economic conditions, such…
Court rejects possibility of increasing investment incentive tax credit through…
The Regional Court in Hradec Králové confirmed the tax administrator’s opinion that it is not possible to increase the insurmountable total of tax credits through discounting and thus effectively draw an investment incentive in a higher amount than…
Contributions to insurance company viewed as price reduction for VAT purposes
Judgment C-717/19 (Boehringer Ingelheim) dealt with a question of whether for VAT purposes, contributions paid to an insurance company for subsidised medicines constitute a reduction in the invoiced price. The Court of Justice of the European Union …
SAC refuses right to deduct VAT on acquisition of movable assets after business…
The Supreme Administrative Court (SAC) rejected a cassation complaint filed by a taxpayer in a dispute concerning a refusal of the right to deduct VAT on an acquisition of movable assets followed by a purchase of a business establishment from the…
SAC comments on invoicing services containing tax non-deductible expenses
The Supreme Administrative Court (SAC) confirmed that tax non-deductible expenses cannot be treated as deductible solely on the grounds that the taxpayer invoiced them plus a profit mark-up to the parent company for the provision of services.
SAC: right to deduct input VAT always to be proved by the taxpayer
In a case involving an entity providing both taxable health services and services exempted from tax without the right to deduct, the Supreme Administrative Court (SAC) dealt with proving the link between the right to deduct and a specific output…