How to correctly treat building land from VAT perspective
The issue of VAT on the sale of real estate, especially land, often causes confusion and leads to different interpretations. A recent ruling by the Supreme Administrative Court (SAC) provides guidance on how to determine whether the sale of land is…
SAC: application of double tax treaty to sale of domestic real estate business share
The Supreme Administrative Court (SAC) ruled that a Cypriot company’s income from the sale of a business share in a Czech company whose value consisted in more than 90 percent of real estate is subject to taxation in the Czech Republic.
SAC rules on tax non-deductibility of interest on intra-group financing
In its August 2025 judgement, the Supreme Administrative Court (SAC) revisited the non-deductibility of interest expenses on a loan that arose in the context of a corporate group's internal restructuring. The court assessed the taxation of interest…
SAC: tax deductibility of advertising and promotion costs
Companies must be able to prove that their advertising and promotion costs were actually incurred in connection with generating, securing and maintaining taxable income. This basic rule for the tax deductibility of costs has yet again been confirmed…
SAC’s Grand Chamber clarifies formal requirements for power of attorney
The Grand Chamber of the Supreme Administrative Court has clarified certain aspects of granting a power of attorney for representation in proceedings before state authorities. The SAC pointed out that there are no stricter requirements for the…
SAC: advertising services and the right to deduct VAT
In judgment 8 Afs 111/2022–36, the Supreme Administrative Court (SAC) assessed how far a taxpayer had discharged their burden of proof in a case involving received advertising services that were to be rendered within motorcycle races, among other…
SAC once again restrains tax administrators from collecting tax, cost what it may
The Supreme Administrative Court has published a long-awaited judgment in the case of the pharmaceutical company ELI LILLY ČR, s.r.o., which concerned the invoicing of marketing and distribution costs. The company sought to achieve minimum…
Application of time test to proceeds from sale of former cooperative apartment
If you intend to sell an apartment that had been in cooperative ownership (owned by a housing cooperative in which you were a member) before you became its owner, beware of calculating the time test: the period of time of the membership in the…
SAC refuses right to deduct VAT on acquisition of movable assets after business establishment purchase
The Supreme Administrative Court (SAC) rejected a cassation complaint filed by a taxpayer in a dispute concerning a refusal of the right to deduct VAT on an acquisition of movable assets followed by a purchase of a business establishment from the…
SAC comments on invoicing services containing tax non-deductible expenses
The Supreme Administrative Court (SAC) confirmed that tax non-deductible expenses cannot be treated as deductible solely on the grounds that the taxpayer invoiced them plus a profit mark-up to the parent company for the provision of services.
Beneficial owner of interest and silent partnership
The Supreme Administrative Court dealt with beneficial ownership of interest in the context of the existence of a silent partnership agreement.
SAC: right to deduct input VAT always to be proved by the taxpayer
In a case involving an entity providing both taxable health services and services exempted from tax without the right to deduct, the Supreme Administrative Court (SAC) dealt with proving the link between the right to deduct and a specific output…