CJEU: Right to deduct VAT in full also for expenses benefiting a third party
In the Vos Aannemingen case (C-405/19), the Court of Justice of the European Union (CJEU) dealt with whether it is possible to deduct, in full, input VAT on expenditures that benefited a third party, and when such benefit shall be regarded as…
Neither creditor nor debtor have to be VAT registered at the time of correcting tax base
Is it compatible with the VAT Directive that both creditor and debtor must be taxable persons for VAT purposes both when providing the supply and when correcting/reducing the taxable amount? The Court of Justice of the EU (CJEU) dealt with this…
Is it possible to deduct VAT on induced investments?
The Court of Justice of the EU (CJEU) in the recent Mitteldeutsche Harstein-Industrie AG case (C-528/19) dealt with whether it is permissible to deduct input VAT on construction work carried out on a municipal road for the benefit of a municipality,…
SAC on deadline for correcting the VAT amount and on appealing against implicit tax assessments
In a recent judgment, the Supreme Administrative Court (SAC) held that it is possible to correct the VAT amount within three years of the end of the taxable period in which the tax liability arose, whereas it is not possible to appeal against…
Business with Northern Ireland after Brexit
The European Commission has prepared a draft of changes to the VAT rules applicable to trading with Northern Ireland. The draft has been submitted as part of the preparations for Brexit at the end of this year. The new rules adjust the existing…
Is it possible to correct tax base for claims not lodged in insolvency proceedings?
In Case C-146/19, the Court of Justice of the EU (CJEU) held that a creditor may adjust the VAT base for a claim not lodged in insolvency proceedings if they prove that the claim would have been irrecoverable even if it had been lodged in…
CJEU: Services associated with both taxable and exempt supplies may not be partially exempt from VAT
In the BlackRock Investment Management (UK) Ltd (C-231/19) case, the Court of Justice of the EU (CJEU) ruled on whether it is possible to treat a service provided via an IT platform used for both exempt and taxable supplies as a supply exempt from…
Quick fixes: GFD’s information and EC’s amended 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…
Pitfalls of managing transfer prices by means of marketing services
The Municipal Court in Prague confirmed the tax administrator’s approach reclassifying marketing services contracted and provided to abroad to ‘consideration received from a third party’. In the court’s opinion, the services were rendered directly…
CJEU: supply recipient must correct a tax deduction even though the supplier did not correct the tax
The Court of Justice of the EU (CJEU) has answered the prejudicial questions concerning a Romanian company that corrected a previously claimed VAT deduction for just a part of the supplies received. In this respect, the CJEU held that national tax…
Anti-crisis tax package: reduction of VAT and road tax
The chamber of deputies passed an anti-crisis tax package involving, apart from the long-discussed tax loss carry-back, a reduction of the VAT rate on selected services as well as a reduction of certain road tax rates. The bill is now to be…
Who is liable to pay VAT upon imports – the declarant, or the goods‘ owner?
The Supreme Administrative Court (SAC) held that the customs declarant, i.e. the ‘regime holder’ is liable to pay tax upon the import of goods from a non-EU country. In the court’s opinion, by lodging the customs declaration, such an entity…