Intermediation in sale of extended warranties not to be excluded from coefficient calculation

The Court of Justice of the EU (CJEU) denied the full entitlement to VAT deduction to a company providing extended warranties during sales of goods. The sale of extended warranties may not be treated as a financial activity, ruled the court.

Tax and IT services for investment funds – exempted from VAT?

The Court of Justice of the European Union (CJEU) yet again dealt with the question of which services provided to collective investment undertakings can be exempted from VAT. In joined cases C58/20 and C59/20, the court outlined the conditions under…

Denying right to deduct VAT before entering bankruptcy compatible with EU directive?

The Court of Justice of the European Union (CJEU) has dealt with the refusal of the right to deduct VAT on taxable transactions carried out by a Romanian company before entering insolvency proceedings.

Amendment to VAT Act 2021: EU directive’s direct effect applicable in majority of e-commerce spheres

An e-commerce amendment to the EU VAT Directive has been in effect since 1 July 2021. Unfortunately, the Czech Republic has not yet implemented it: the relevant amendment to the Czech VAT Act is still awaiting approval by the Senate. In its recently…

Summary of e-commerce changes (2021 VAT amendment)

From 1 July 2021, significant changes in VAT on the cross-border sale of goods over the internet enter into effect, concerning both sales within the EU and imports from third countries. The place of taxation will be the country of the recipient,…

VAT refunds post-Brexit

The General Financial Directorate has issued information on VAT refunds to UK entities after Brexit.

Coordination Committee: Is compensation for unconsumed goods subject to VAT?

The Czech Chamber of Tax Advisors has come up with a proposal to unify the interpretation regarding the application of VAT in situations when the customer compensates the supplier for expenses incurred by the supplier for material unconsumed upon…

Amendment to VAT Act 2021: Goods from e-shops becoming more expensive?

From 1 July 2021, VAT will be collected on all import consignments regardless of their value. Thus, when purchasing goods from foreign e-shops, it will be necessary to consider, among other things, whether the product price includes or excludes VAT.…