VAT fixed establishments and foreign subsidiaries
The Court of Justice of the EU (CJEU) has dealt with the question of whether a parent company‘s VAT fixed establishment originates in another EU member state where its subsidiary is located and provides the parent company with marketing and other…
Development in administrative practice for fuel cards
The VAT treatment of fuel cards is a closely watched topic. Although the cards are frequently used by vehicle operators to refuel, the VAT Act does not offer any detailed guidance on the correct application of the tax: the VAT treatment of these…
Donations to Ukraine: Does VAT obligation arise?
The General Financial Directorate has issued summary information on VAT implications of making donations to support Ukraine. While for income tax, Czech laws can be amended to respond flexibly, the situation is rather more complicated for VAT, as…
Leaseback: change in VAT treatment
Within the Coordination Committee of the Czech Chamber of Tax Advisors and the General Financial Directorate, the financial administration confirmed that they will start applying the Court of Justice of the European Union’s interpretation to…
One-stop-shop and VAT in the digital age
The Council of the EU and the European Commission are preparing further steps on VAT to simplify cross-border transactions and the import of goods into the EU for end consumers. The digitisation of VAT reports, electronic invoicing and harmonisation…
Duty to declare tax on one-time supplies paid in instalments
In Case C-324/20, the Court of Justice of the European Union addressed the question of when the duty to declare VAT occurs for one-time supplies paid for in instalments.
Changes in VAT rate on supply of medical devices
The amendment to the VAT Act in effect from 1 January 2022 narrows the scope of medical devices subject to the reduced VAT rate. If you buy or sell medical devices, we recommend you check whether this amendment also applies to your goods.
VAT from January – what’s new and what remains unchanged?
This new year brought only a few changes: the end of the waiver of VAT on supplies of electricity and gas; major differences in VAT for tour operators; and simplified Intrastat reporting. In contrast, the amount of turnover for statutory VAT…
GFD clarifies procedure regarding VAT waiver for electricity and gas
According to the General Financial Directorate (GFD), the waiver of VAT shall apply to electricity intended for any purpose. As for gas, the waiver shall apply both to supplies through the distribution system, and to tankers and cylinders. The GFD…
New VAT rules for tour operators from 2022
Tour operators will encounter significant changes in the VAT area as of 1 January 2022. From that date, tour operators should start declaring VAT on advances received and should not calculate VAT based on aggregated monthly data. Furthermore,…
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…
Contributions to insurance company viewed as price reduction for VAT purposes
Judgment C-717/19 (Boehringer Ingelheim) dealt with a question of whether for VAT purposes, contributions paid to an insurance company for subsidised medicines constitute a reduction in the invoiced price. The Court of Justice of the European Union …