ViDA - digital reporting and e-invoicing still music of the future

The proposal for a VAT in the Digital Age (ViDA) Directive that would modernise and advance the EU’s single VAT system is running behind schedule. The proposal did not move forward during the Spanish Presidency of the Council of the EU, but in the…

SAC on VAT exemption for intra-community supply

The Supreme Administrative Court (SAC) did not recognise the right to VAT exemption for a supply of goods to another EU member state, as there were doubts whether the goods had been supplied to a person registered for tax in another member state,…

Details of 2025 amendment to VAT Act - Part I

The draft amendment to the Value Added Tax Act, currently in the external comment procedure, introduces extensive changes as it transposes EU directives and responds to CJEU rulings and practical experience. Below we present the first part of these…

Amendment to VAT Act to narrow scope of exempt financial activities

The Ministry of Finance is proposing to significantly narrow the scope of financial activities exempt from VAT in a forthcoming amendment to the VAT Act. The aim is to align the Czech VAT Act with the EU Directive and the interpretations of the…

How to apply VAT on selected passenger cars in 2024?

In mid-January, the General Financial Directorate (GFD) issued two information pieces on the practical application of changes to VAT from 2024. In this article, we focus on the Information on the VAT Deduction for Passenger Cars with a Purchase…

CJEU on application of tax rate for selected beverages

The VAT Directive does not prevent member states from applying a reduced rate to selected goods and services. One of the possible criteria for classifying goods into reduced rates is the customs nomenclature. Member states may use other…

Changes in VAT from 2024

On 1 January 2024, the consolidation package came into effect. It also includes an amendment to the VAT Act, introducing two major changes to VAT: the consolidation of two reduced rates of 15% and 10% into one 12% rate (reclassification of some…

SAC comments on VAT deduction on anti-radar and GPS logbooks

The Supreme Administrative Court upheld the tax administrator's opinion and disallowed the VAT deduction on the purchase of anti-radar equipment, as it was not used for economic activity and did not protect the taxpayer's property. The SAC also…

Development of administrative practice in VAT treatment of fuel cards

The application of VAT on fuel cards has been a highly scrutinised topic. Fuel cards are often used by vehicle operators for refuelling. In September this year, the VAT Committee issued new guidance after re-visiting the EU Court of Justice's ruling…

SAC: transfer of technical improvement after lease end regarded as service from VAT perspective

The Supreme Administrative Court (SAC) ruled on the question whether the transfer of technical improvements (carried out by a lessee at their own expense) to the lessor for compensation at the termination of the lease constitutes a service from the…

Marketing services from VAT perspective

In its recent judgment, the Supreme Administrative Court (SAC) dealt with the question of whether a distribution of pharmaceuticals and marketing services constitute a single supply for VAT purposes.

CJEU: tax administrator may also refund wrongly charged VAT

The Court of Justice of the European Union (CJEU) ruled in Case C-453/22 that a taxpayer has the right to demand from a tax administrator a refund of VAT that a supplier has wrongly charged to the taxpayer and will not return due to the statute of…