2019 amendment to the VAT Act: What changes may the amending proposals bring?
An amendment to the VAT Act, with planned effectiveness during the course of 2019, has recently passed through the second reading in the Chamber of Deputies. Below we present a number of submitted amending proposals.
October ECOFIN meeting: quick VAT fixes
In addition to the generalised reverse charge mechanism, other important VAT changes were agreed on at the October meeting of the Economic and Financial Affairs Council (ECOFIN). These involve quick fixes and the application of a reduced rate to e…
SAC: filing additional tax return a preferred option to initiating tax inspection
Where the tax authority has reason to expect that additional tax will be assessed, taxpayers must be given a chance to correct their error by filing an additional tax return. Typically, these are cases where the conclusions of a single tax…
SAC: Involvement in tax fraud must always be proved by tax administrator
The Supreme Administrative Court (SAC) dealt with a case in which the tax administrator denied a taxpayer’s entitlement to deduction of VAT on received taxable supplies, claiming that the taxpayer knew or should have known that they had been…
Brexit: What happens if UK leaves the EU with no deal?
In mid-July, the UK government published more than a hundred-page-long document called the UK-EU Future Relationship White Paper, providing information on how the relationships between the UK and the EU should look like with respect to the economy,…
VAT on services connected with import and export of goods
In June, the Coordination Committee of the Chamber of Tax Advisors and the General Financial Directorate (GFD) issued a statement on the VAT exemption of services directly connected with the import and export of goods. The information confirms the…
Active defence pays off in tax fraud investigations
The Supreme Administrative Court (SAC) has brought a new perspective on proving the taxpayer’s involvement in a transaction affected by tax fraud. While remaining consistent with its previous case law as to the distribution of the burden of proof,…
2019 VAT amendment: Are limited liability company statutory representatives VAT payers? When not to worry about a time shift in declaring VAT?
In the third article on the most important changes in VAT effective from 2019, we provide answers to the above questions.
Financial administration’s report for 2017: revenues have grown, mostly from VAT
In July, the Czech financial administration published a report on its activity for 2017: revenues have grown for both direct and indirect taxes. The main cause is the Czech economy’s faster growth and related higher spending by households and…
2019 amendment to VAT Act: other three important changes
A draft amendment to the VAT Act has been submitted to the Chamber of Deputies. Below we present three significant changes.
The end of the present EU VAT system approaching?
Late in May this year, the European Commission submitted a proposal to amend the VAT Directive, outlining the definitive (final) VAT system. The new system should unify the principles applicable in the VAT area across the European Union, simplify…
Tax penalty with a prison sentence on top?
One of the topics frequently discussed by Czech judiciary and tax professionals is the concurrence of administrative and criminal sanctions. A crucial issue here is the relationship between a penalty imposed in tax proceedings, and a subsequently…