Reserve accounts for repairs of tangible assets under SAC scrutiny
In a recent judgment, the Supreme Administrative Court (SAC) commented on the conditions for the tax deductibility of provisions for repairs of tangible assets. In its decision, it followed existing case law and confirmed a strict approach to…
Supreme Administrative Court on proving right to deduct VAT on subcontracted supplies
Is an invoice and a contract enough to prove the right to deduct VAT? In its recent judgment, the Supreme Administrative Court (SAC) concluded that they are not. If the tax administrator challenges the scope or nature of the services received, the…
Supreme Administrative Court denies customs duty refund due to late filing
The deadline for applying for a customs duty refund is fixed. This was confirmed by a recent judgment of the Supreme Administrative Court (SAC), reminding importers that, in the event of disputes with suppliers, they must act in time.
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…
SAC on taxation of travel allowances for foreign employees
In a recent judgment, the Supreme Administrative Court (SAC) addressed the question of which travel allowances paid to foreign employees on business trips to the Czech Republic may fall outside the scope of income tax.
SAC on limits for monitoring employees’ electronic communication
Checking business emails and other work-related electronic communications does not have to be automatically impermissible. However, in its recent judgment, the Supreme Administrative Court (SAC) clearly showed that employers are operating in a…
SAC: When does advance payment trigger obligation to declare VAT?
In a recent judgment, the Supreme Administrative Court (SAC) held that the obligation to declare VAT on a received advance payment arises when, as of the date the advance payment is received, the taxable supply is known with sufficient specificity.…
SAC: international hire of labour (IHOL) seen as possible indication of order by parent company?
In its recent judgment, the Supreme Administrative Court (SAC) upheld the tax authority’s conclusion regarding the existence of control by the parent company, agreeing with the argument that the subsidiary’s management consisted predominantly of…