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…
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 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…
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…
SAC on proving conscious involvement in tax fraud in chain of supplies
The Supreme Administrative Court (SAC) has dealt with denying the right to deduct VAT to a company on the grounds of it being knowingly involved in VAT fraud. In its judgment, the court summarised the relevant case law for assessing VAT fraud.
Until when can additional tax return for lower tax be filed?
The extended chamber of the Supreme Administrative Court (SAC) has ended a long-standing dispute between the financial administration and taxpayers regarding the deadline for filing an additional tax return for lower tax. In doing so, the SAC sided…
Abuse of rights in real estate leases and VAT
The Municipal Court in Prague ruled on the distinction between leases of real estate and accommodation services, and its implications for VAT treatment. The court concluded that the case in question involved an abuse of rights.
VAT in Digital Age (ViDA): digital reporting and e-invoicing
The draft ViDA Directive modernises the indirect tax system across the European Union, aiming to increase EU tax revenues, digitalise reporting, defend against tax fraud more effectively, and move towards a definitive VAT system that will view cross…
CJEU issues another judgment on fixed establishments for VAT purposes
The Court of Justice of the European Union (CJEU) has held that where a customer receives services based on an exclusive contract for the provision of services in a state other than the state in which their business is located, the resources of the…
Coordination Committee clarifies changes to VAT Act for real estate
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors of the Czech Republic has dealt with changes to the VAT Act in connection with new construction regulations. The changes will be effective from 1 January…