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…
CJEU again ruled on transport in chains of transactions
In its February decision (C-628/16), the Court of Justice of the European Union (CJEU) again dealt with how to attribute transport or dispatch to two successive intra-community supplies. According to the CJEU, transport may not be ascribed to the…
Burden of proof for shortages ascertained
In its judgment No. 1 Afs 327/2017, the Supreme Administrative Court (SAC) dealt with an additional assessment of value added tax on shortages recognised during stock takings. The judgement provides insight into how shortages are viewed by the Czech…
CJEU: deduction of VAT on input must be allowed upon assessment of additional VAT on output
Recently, the Court of Justice of the European Union (CJEU) dealt with two interesting and in principle similar cases that both involve the rectification of incorrectly declared supply in terms of VAT. Whereas national courts denied the customer’s…
More changes to ERS and VAT rates?
The Ministry of Finance released for external comments a draft amendment to the Act on Electronic Reporting of Sales and the VAT Act. The proposed effective date is 1 January 2019, excepting the provisions concerning the launch of the last phases of…
SAC sets limits to fighting VAT fraud
Where a supply has been affected by VAT fraud, the tax administration demands almost investigative checks of suppliers to maintain the entitlement for VAT deduction; and this may happen at any point in the chain. The Supreme Administrative Court …
New rules of liability for unpaid VAT according to SAC
The Supreme Administrative Court has specified the conditions of a supply recipient’s liability for VAT unpaid by the supplier: a payment to a foreign account cannot automatically give rise to liability.
Better times ahead for cross-border trading taxpayers?
The Supreme Administrative Court has recently stood up for a taxpayer who effected a supply of goods to another member state, i.e. a transaction exempt from VAT with entitlement to deduction. The crucial point of the dispute was the taxpayer’s good…
SAC: VAT cannot be levied twice on the same transaction
The Supreme Administrative Court (SAC) granted many VAT payers’ Christmas wishes by its favourable ruling regarding the fight against tax fraud. In the FAU case, attracting considerable media attention, the court said no to the concurrence of…
New opportunity for Czech taxpayers to decrease VAT on unpaid receivables?
At the end of last year, the Court of Justice of the European Union issued a judgment in the Italian Enzo Di Maura case (C 246/16), which involved a VAT refund relating to unpaid receivables from debtors subject to bankruptcy or insolvency…