Tax & Legal Update
SAC: new judgments on substantive and temporal connection
In recent months, the Supreme Administrative Court (SAC) has issued several noteworthy rulings, all of which underline the importance of establishing a clear substantive and temporal connection between claimed expenses and the relevant taxable…
Digital Omnibus and AI: simplification and postponement of AI rules
The European Commission has disclosed a digital package (known as the Digital Omnibus) that brings together a set of proposals for technical amendments to existing legislation, particularly in the digital field. It includes a proposal for a…
EET 2.0 and other proposals by Ministry of Finance
The Ministry of Finance has disclosed a draft legislative package that includes the reintroduction of electronic sales reporting (EET) and other changes in personal income taxation, family support, and the digitisation of tax administration.
Czech legislation has taken first step towards self-driving cars
Since the beginning of this year, it has been possible to use vehicles with conditional driving automation on selected sections of Czech roads. According to the international SAE scale, this is the first level at which a vehicle can drive itself…
GFD’s long-awaited information on application of VAT to immovable assets
The General Financial Directorate (GFD) has published information on the application of VAT to immovable assets from 1 July 2025. The methodology responds to last year's extensive amendment to the VAT Act and describes the key changes to the…
Pillar 2: latest OECD and EU developments
The OECD has issued a new package of measures (the Side-by-Side Package) containing five safe harbours that should simplify the global minimum tax rules. It is named after the safe harbour that will ensure the parallel functioning of the global…
CJEU: airlines must refund ticket prices including agent’s commission
Airlines’ options to avoid paying compensation to passengers are becoming even more limited. A recent CJEU ruling states that if a flight purchased through an agent authorised to sell tickets for a given airline is cancelled, passengers may claim a…
SAC on investments made based on parent company’s decision
The Supreme Administrative Court (SAC) has ruled on a case in which a company with a limited functional and risk profile suffered a loss due to a change in its production portfolio. The SAC confirmed the tax administrator's conclusions that the…
Supreme Court: bank transfer as evidence of debtor's consent to debt repayment by…
Under certain conditions, a third party may also settle (repay) a debt on a debtor’s behalf. The Supreme Court has dealt with the question of when a creditor may refuse such settlement. Refusal to accept repayment from a third party may have a…