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European Court of Justice: Czech Republic excessively restricts the possibility of reducing VAT on bad debts

24.5.2019
In one of its most recent judgments, the European Court of Justice (“ECJ”) was considering a dispute between a Czech VAT payer and the Czech tax administration regarding the possibility of adjusting (reducing) output VAT on debts owed by an insolvent debtor who ceased to be a taxable person. Under the Czech VAT Act, this […]

Tax package for 2019 already in effect

1.4.2019
We wish to inform you that a package of tax measures for 2019 has been adopted. Some of the provisions came into effect on 1 April 2019. Value added tax Regarding VAT, there have been major changes in the corrections of tax base and VAT amounts. The main changes effective since 1 April 2019 are […]

Ground-breaking judgment of the Constitutional Court – VAT payers entitled to the refund of an undisputed part of excess VAT

11.3.2019
In another ground-breaking judgment relating to taxation, the Constitutional Court has ruled in favour of VAT payers. The Constitutional Court has been more and more often considering disputes between VAT payers and tax authorities, where the tax authority has withheld the entire excess VAT while contesting only some performance and considering the other undisputed. In […]

Invitation to join us for a webinar: Brexit and the impact on VAT

28.2.2019
With only a few weeks to go (effective date 29 March, 2019) and still no sign of an agreement between the United Kingdom (UK) and the European Union (EU), many tax authorities are gearing up for a hard Brexit. A “hard Brexit” means a number of things, but critically it means customs-controlled borders, which introduces […]

Do you finance your company using debt capital and deduct the financial costs from the corporate income tax base?

5.12.2018
If so, we recommend acquainting yourself with the proposed amendment to the Income Taxes Act in sufficient time in advance. The amendment is currently before its second reading in the Czech Parliament’s Chamber of Deputies as the implementation of the European Anti-Tax-Avoidance Directive (as we informed you in our August newsletter) will bring a significant […]

Proposed amendment to the VAT Act – new rules for tax base corrections and VAT

26.11.2018
In this newsletter you can learn about the proposed changes that will affect tax base corrections and VAT. The changes, which are to be brought by the draft amendment to Act No. 235/2004 Sb., on Value Added Tax (“VAT Act”), are expected to significantly affect all taxpayers wishing to issue a corrected invoice (tax document). […]

Have you published your financial statements in the Collection of Deeds?

14.11.2018
If not, you face a risk of an administrative fine. Tax authorities have recently become more active in collecting the fine, as it does not require much effort. Do you know that the fine may be imposed not only by a commercial court but also by the tax authority? Companies are very well aware of […]

Transfer pricing audits – even tax authorities make mistakes

19.4.2018
With increasing determination, tax authorities continue with their inspections of transfer pricing policies. Nevertheless, even they sometimes take unlawful steps we should all know about, either when preparing or later defending our transfer pricing rules. In one of its recent judgments, the Czech Supreme Administrative Court (“SAC”) stood up for a taxpayer and ruled that […]

New developments in payroll-related matters in 2018

18.1.2018
Dear clients, We provide you with a brief overview of changes and new developments in payroll effective in 2018. Minimum wage increased The minimum monthly wage for full-time employment has been increased from the current CZK 11,000 to CZK 12,200 and the minimum hourly wage has been increased from CZK 66 to CZK 73.20. Maximum assessment basis […]

VAT as a part of the real estate acquisition tax base – continued

28.11.2017
As presumed in our previous newsletter, the case of the village of Střelské Hoštice continues with a rather nice surprise. This time, however, the surprise came from the tax administration itself. The tax administration published a new press release on 24 November 2011 in which it significantly expanded on its original statement of September 2017. More […]