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EU Tax Intermediaries Directive – “DAC 6”

18.9.2019
The EU Tax Intermediaries Directive (“Directive”) introduces new mandatory obligation on intermediaries and taxpayers to report information on cross-border arrangements that meet certain criteria to the tax authority (“EU Disclosure Requirements DAC 6”). This Directive will be implemented into the Czech legislation next year, but with retrospective effect. The Czech Chamber of Deputies is currently […]

What is needed to eliminate withholding tax on the payment from Poland

2.9.2019
If you have customers in Poland and you invoice them for your services, you might be surprised what information you will be required to provide to your Polish customers in order to eliminate withholding tax on the payment from Poland. This is due to a change of Polish legislation as of 1 January 2019 stipulating […]

EU Commission approved request of Czech Republic for generalized reverse charge mechanism

19.8.2019
EU Commission approved the request of Czech Republic for possibility to use generalized reverse charge mechanism. If adopted, reverse charge application would be related to all domestic transactions above 17,500 euros, or equivalent 450,000 CZK. Until now the local reverse charge mechanism was permitted as a derogation from EU VAT Directive in sectors vulnerable to […]

New notification obligation regarding income paid abroad applicable as of the end of May

29.5.2019
As we have informed you, most changes affecting income taxes that were adopted as part of the ‘2019 tax package’ will only enter into effect in 2020 or as of the tax period beginning after 1 April 2019. But if you have foreign relationships, there is one inconspicuous change that may also affect you – […]

European Court of Justice: Right to deduct VAT on fuel cards

27.5.2019
In one of its recent judgements, the European Court of Justice (“ECJ”) has created uncertainty for a number of VAT payers. Those affected are taxable persons who use various fuel and similar cards to purchase fuel and naturally treat such transactions as a supply of goods (fuel) between a petrol station, a card provider/administrator and […]

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 […]