Case law
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…
Months of uncertainty end: SC unifies interpretation of ‘unseizable amount’
Early this year, legislators quite exceptionally increased the normative monthly housing costs for 2022. These are usually updated annually to correspond to housing prices; for 2022 however, they were increased for the second time in response to…
Statutory body liable for unpaid VAT?
Advocate General Juliane Kokott has recently dealt with whether the general joint and several liability of a statutory body falls within the scope of the VAT Directive (due to a company's inability to pay its VAT debt). She also commented on whether…
SAC on default interest waivers
In its judgment 4 Afs 311/2021-33, the Supreme Administrative Court (SAC) addressed whether it is possible to grant a taxpayer's request for a waiver of default interest that has arisen from incorrect VAT treatment. The entity themselves actively…