EU: new rules to simplify collection of VAT on imports
The Council of the European Union has adopted new rules to simplify the process of collecting value added tax on imports of goods. The change shifts the obligation to pay VAT on EU imports from the consumer to the supplier. The aim is to encourage…
GFD information on reduction of VAT deduction for bad debts
At the beginning of July, the General Financial Directorate (GFD) issued its information on the correction of a VAT deduction for overdue receivables on a debtor's part, explaining the practical application of the new provision of Section 74b(3) of…
CJEU: VAT perspective on supply of services to subsidiaries
In a recent judgment, the Court of Justice of the European Union (CJEU) addressed whether a supply of several partial services by a parent company to a subsidiary in the context of active management constitutes a single supply. The CJEU concluded…
Advocate General comments on VAT treatment of tooling
The Advocate General of the Court of Justice of the European Union (CJEU) has confirmed the current approach to the VAT treatment of the sale of tooling (moulds), whereby it is a supply of goods without transport and therefore a taxable supply at…
Municipal court: VAT and gratuitous supply of land
The Municipal Court in Prague stated in its judgment that the tax base upon a contribution of land into a business company is its residual value if the right to deduct VAT was at least partially claimed upon its acquisition.
CJEU on VAT treatment of subsidies in public transport
The Court of Justice of the European Union (CJEU) addressed whether a lump-sum compensation provided by a region to a public transport operator to cover their loss is a part of the taxable amount for VAT purposes. In the present case, the…
VAT treatment of compensation for stolen goods
The Coordination Committee of the Chamber of Tax Advisors and the General Financial Directorate recently considered compensation for stolen goods from a VAT perspective and concluded that such compensation is only subject to VAT if two conditions…
New decree on calculating floor area for VAT purposes
The Ministry of Finance presented a draft of a new decree on the method of calculating floor area for VAT purposes. The decree responds to changes in legislation pertaining to real estate and construction, about to enter into force on 1 July 2025.