Tax & Legal Update

New decree on calculating floor area for VAT purposes

The Ministry of Finance presented a draft of a new decree on the method of calculating floor area for VAT purposes. The decree responds to changes in legislation pertaining to real estate and construction, about to enter into force on 1 July 2025.

News in Brief, May 2025

Last month's tax and legal news in one or two sentences.

EU amends regulation on additional customs duties on US imports

The EU authorities have published in the Official Journal an amendment to the Regulation on additional customs duties on the imports of certain products originating in the United States of America. This is in response to the excessively high…

Increase in limits for small-scale public contracts and other significant changes…

On 3 April 2025, an amendment to the Public Procurement Act entered into force increasing the limits for small-scale public procurement and bringing other significant changes that will affect "public tenders".

SAC on tax deductibility of provisions for repairs of tangible assets

In its recent judgment, the Supreme Administrative Court dealt with the creation of provisions for repairs of tangible assets under the Reserves Act. The key issue was the (non-) fulfilment of the condition that provisions may only be created for…

CJEU Advocate General: transfer pricing and VAT treatment

In his opinion (C-726/23), Advocate General Jean Richard de la Tour stated that remuneration for intra-group services calculated using the transactional net margin method as recommended by the OECD should be regarded as consideration for services…

Recovering VAT on bad debts in 2025

Effective from 1 January 2025, the amendment to the VAT Act introduced, among other things, changes concerning the correction of the tax base for bad debts. Let’s look at the changes in more detail.

Disguised tax inspection: SAC on the point of time of its actual commencement

The initiation of a tax inspection does not always have to be connected with a formal notification by the tax administrator, as legislation assumes. In its recent judgment, the Supreme Administrative Court (SAC) noted that a tax inspection has…

CJEU: Assessment of conditions for dividend exemption on subsidiary’s part

The Court of Justice of the EU ruled in a dispute (C-228/24) between a Lithuanian company and the tax authorities regarding the application of the abuse of rights concept under Directive 2011/96/EU on the taxation of parent companies and…

SAC confirms right to interest on wrongly assessed customs duties

In its recent judgment, the Supreme Administrative Court (SAC) has reconsidered its existing case law and granted a taxpayer the right to interest on wrongly assessed customs duty. The SAC emphasised that this right is guaranteed by EU law and that…