Employers’ perspective on plug-in hybrid vehicles
Until recently, Czech tax and labour-law legislation lacked any regulation of plug-in hybrid vehicles. If employers provided such vehicles to their employees for both business and private purposes, the determination of the employee’s non-monetary…
Quick fixes: GFD information and amendment to EC explanatory notes
The Czech amendment to the VAT Act implementing quick fixes is still waiting for its second reading in the Chamber of Deputies. At the end of January, the General Financial Directorate disclosed information confirming the option of invoking the EU…
GFD information on transfer of heat and cold to 10% VAT rate
In its information effective from 1 January 2020, the General Financial Directorate (GFD) draws attention to the rules of determining the date of supply for the delivery of heat and cold. It provides examples how to technically solve the settlement…
GFD sheds light on application of VAT on vouchers
The General Financial Directorate (GFD) issued its Information on the Application of VAT on Vouchers, clarifying the application of value added tax on various types of vouchers and illustrating tax implications on several examples from practice.
VAT treatment of members of societies finally clarified?
In its May and June sessions, the Coordination Committee commented on the tax treatment of members of societies (former associations) without legal personality. A presentation from the side of the tax advisors dealt with the VAT treatment when…
Amendments to GFD’s information effective from January
The General Financial Directorate (GFD) announced that the existing approach to the waiver of penalties for the failure to file VAT ledger statements will also be applied in 2018 and that the unreliable payer concept criteria will be extended…
Are you renting out on Airbnb? Then you are liable to tax, says financial administration
Accommodation providers using internet portals such as Airbnb should be on their guard. The General Financial Directorate’s Information published in October 2017 draws attention to tax obligations in this area, covering income taxes, value added tax…
GFD guideline on research and development
Case law of the Czech Supreme Administrative Court confirms that a flawless research and development project represents a necessary precondition for claiming a research and development deduction in a tax return. The General Financial Directorate …
A clear path towards interest on retained deductions
The taxpayer’s entitlement to interest on long-retained excess deductions has been repeatedly confirmed by the Supreme Administrative Court (SAC), despite the financial administration’s displeasure. The General Financial Directorate (GFD) finally…
Taxation of disproportionate profit share distributions
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors recently dealt with the taxation of profit distribution under the Corporations Act in situations where members of a limited liability company or…
Latest news - October 2017
Last month’s tax and legal news in a few sentences.
Fast-growing number of unreliable payers
The unreliable payer concept has been in the VAT Act since 2013. According to the GFD, in combination with the taxable supply recipient’s liability for unpaid VAT, this concept should serve as an effective tool to fight VAT evasion, whereas the…