Tax & Legal Update
Amendment to Income Tax Act: changes for entrepreneurs and lessors
The planned major amendment to the Income Tax Act, being developed in connection with the new Accounting Act, will also significantly affect the taxation of individuals. In addition to aligning the existing rules with the new terminology and…
More flexible GBER rules: what will change for Czech investment incentives?
The European Commission is preparing to relax the rules of regional investment aid from 2027. These rules also set the framework for Czech investment incentives, but Czech companies will not benefit from the changes automatically: Czech legislation…
Disguised employment mediation could become a criminal offence
Disguised employment mediation has long been among the most common breaches of labour law identified by labour inspectors. A little-noticed amending proposal to the Criminal Code bill currently before the Chamber of Deputies aims to significantly…
Major amendment to Income Tax Act takes clearer shape
The Ministry of Finance has submitted for comment procedure draft rules on transition (switching) between tax regimes, and draft transitional rules for implementing the planned major amendment to the Income Tax Act; the amendment is intended to…
EU General Court: business gifted in two equal shares falls outside VAT transfer…
The transfer of a business free of charge to two individuals, each receiving a half share, does not constitute a transfer of a totality of assets or part thereof under Article 19 of the VAT Directive if neither share allows its recipient to carry on…
Slovakia introduces mandatory e-invoicing
From 1 January 2027, Slovakia will join the European countries that have introduced mandatory e-invoicing. The new rules will change how invoices for certain domestic transactions are issued, sent and received. Which businesses will be affected, and…
EU General Court: boat repairs in EU need not incur duty or import VAT
Where goods from a third country are brought into the EU solely for repair and then returned without being used there, import VAT may not arise and any customs debt may be extinguished. The EU General Court confirmed this in a judgment addressing…
CJEU: abuse of law not limited to conduit companies
A parent company’s genuine economic activity and beneficial ownership of income do not, in themselves, preclude application of the abuse of law doctrine. The Court of Justice of the European Union (CJEU) confirmed this in a judgment concerning the…
EU General Court: classification of e-bikes imported in parts
The EU General Court considered whether separately imported e-bike components could be treated as complete e-bikes subject to anti-dumping duties. It concluded that importing individual parts separately does not, in itself, prevent such…
Disposal of goods and their subsequent use: determining correct VAT treatment
In a recent discussion paper, the Coordination Committee of the General Financial Directorate (GFD) and the Chamber of Tax Advisors addressed the VAT treatment of the disposal of goods where disposal involves recovering raw materials, spare parts or…
Instant euro payments and payee verification: new obligations for Czech banks and…
From 2027, Czech banks and payment institutions will face new obligations concerning euro payments. In particular, the EU regulation introduces mandatory verification of the payee, expands the availability of instant payments and changes the rules…