Tax & Legal Update
Planning agreements are subject to VAT: substance, not title, is decisive
The General Financial Directorate (GFD) has confirmed that the public-law nature of a planning (zoning) agreement does not in itself mean that the supplies provided under it are outside the scope of VAT. If a municipality, a Prague municipal…
Who actually owns the company? The answer no longer available to everyone
Until recently, it took just a few clicks for anyone to find out, free of charge and without registration, who ultimately stood behind any Czech company. That era ended on 17 December 2025 when the register of beneficial owners was made inaccessible…
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All eventsOnly one year left before new AML regime starts
Obliged entities have only one year left to adjust their AML framework to the new rules. This is not only about the regulation itself but also about the technical standards and guidelines that are gradually being prepared by the new European…
EU General Court: VAT group membership and transfer of VAT exemption conditions
In judgment T-444/25, the General Court of the EU answered a question referred for a preliminary ruling concerning the transfer of conditions for VAT exemption between individual members of a VAT group. It confirmed that a membership in a VAT group…
SAC on proving management services within a holding group
In judgment 8 Afs 164/2025-40, the Supreme Administrative Court (SAC) examined how specifically the tax administrator must formulate their doubts and what evidence a taxpayer must provide when claiming costs of services provided within a corporate…
Home office from beach: attractive benefit and potential problem
The summer months bring increased interest in working from abroad. Employees want to combine holidays with work, and employers often try to accommodate them. However, home office from another country is not just “ordinary remote work with a better…
SAC: Application for exemption from income tax on royalties is not time-limited
The Supreme Administrative Court (SAC) has changed its previous interpretation concerning the time limit for filing an application for exemption from income tax on royalties. Following a preliminary ruling by the Court of Justice of the European…
EU General Court addresses VAT exemption for loan management
Does a VAT exemption apply where a credit provider has sold loans to another person but has retained their management and charges a fee for that? According to the General Court of the EU, it does not. Since the original provider is no longer in the…
Buy Now - Pay Later (BNPL) services to be treated as regular consumer credit
So far, the regulation of “Buy Now – Pay Later” (BNPL) services has been relatively lenient under Czech law thanks to an exemption in the Consumer Credit Act. This is about to change significantly. With the transposition of the revised Consumer…