General Court of the EU: contribution in kind to a company from a VAT perspective
In a recent judgment, the General Court of the EU considered the VAT treatment of a contribution in kind of real estate to a company whose sole shareholder is the contributor. If the contributor receives no actual consideration, the transaction does…
VAT amendment from 2027 before Chamber of Deputies: ViDA package and call-off stock arrangements
From January 2027, the VAT Act is set to undergo changes related to the EU VAT in the Digital Age (ViDA) package. The amendment is primarily intended to extend and clarify the rules governing the One Stop Shop (OSS) scheme, reduce the need for VAT…
SAC on obligation to pay VAT stated in invoice
The Supreme Administrative Court (SAC) considered whether VAT stated in an invoice must be paid even where the invoiced supply is fictitious. It confirmed that the decisive factor is not the mere statement of VAT in the invoice but the existence of…
Financial Administration’s information on gratuitous supplies and opinion on right to deduct VAT in subsidy projects
The Financial Administration has issued an updated version of its Information on the application of VAT to gratuitous supplies of goods. It clarifies the rules for determining the taxable amount (tax base) in the case of charitable donations of…
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…
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…
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…
CJEU gives precedence to national legislation over concept of principal and ancillary supplies
A recent judgment of the Court of Justice of the European Union (CJEU), arising from disputes in Germany, shows that an “all-inclusive” package may be split into a part subject to the reduced rate and a part subject to the standard rate, without…