Case law
VAT treatment of sub-participation agreements
The Court of Justice of the European Union (CJEU) has dealt with the question whether sub-participation agreements, whereby a creditor under a credit agreement (a lender) transfers the credit risk to a third party, are covered by the exemption from…
Penalty for filing VAT ledger statement for incorrect taxable period
In case 5 Afs 281/2021-34, the Supreme Administrative Court (SAC) dealt with the question of whether a CZK 50,000 penalty had been legitimately imposed on an entity who had incorrectly filed a VAT ledger statement for a previous period. The SAC…
Definition of concern group for actions to set aside under insolvency act
The Business Corporations Act defines a group (a ‘concern’) as follows: one or more persons subject to single management by another person or persons form a concern group with that dominant person. However, the concept of a concern group is also…
When do structures come into existence or cease to exist in the legal sense? What…
In its recent judgment, the Supreme Administrative Court dealt with the question of when a structure comes into existence or ceases to exist as a thing in the legal sense (7 Afs 132/2022-22), which impacts the deductibility of tax expenses.
Right to deduct where supplier has not paid output VAT
In case C-227/21 HA.EN. the Court of Justice of the European Union (CJEU) dealt with whether a supply recipient has the right to deduct VAT if they knew or should have known that the supplier was not going to pay output VAT because of financial…
CJEU again on right to deduct VAT in context of holding companies
The Court of Justice of the European Union has ruled on whether a holding company is entitled to deduct VAT on inputs relating to services provided as a shareholder’s contribution.
Can VAT be deducted within the adjustment mechanism even after the limitation period?
In the Dutch case of Company X (C-194/21), the Court of Justice of the European Union held that the adjustment mechanism should not be applied where the taxable person failed to exercise the right to deduct VAT and has lost that right due to the…
When claiming R&D allowance, attention must be paid to cost accounting
According to the Regional Court in Ostrava, when proving compliance with the conditions for claiming a research and development allowance, it is necessary that expenses incurred in the implementation of research and development projects are…
May tax administrator request information about movement of vehicles from traffic…
The Supreme Administrative Court (SAC) has confirmed that tax administrators may for tax purposes request from the Police of the Czech Republic information on the movement of particular motor vehicles processed within the automatic vehicle detection…
When are statutory representatives liable for their company’s debts?
At the end of June, the Supreme Court (SC) issued a judgment dealing with the conditions of the liability of statutory representatives of a limited liability company for the company's debts. The court also commented on the possibility to recover…
Controversial issues of claiming R&D allowance
On 22 June 2022, the Supreme Administrative Court (SAC) issued an interesting judgment dealing with the application of a research and development allowance. The SAC commented on two controversial issues: the concurrence of receiving a subsidy and…
VAT upon incorrect classification of intra-community supplies in chain transactions
In Polish case C-696/20 B., the CJEU ruled on whether a VAT payer involved in a chain transaction may be required to pay VAT on both the supply and the acquisition of goods. In its opinion, the CJEU recalled that the purpose of Article 41 of the VAT…