Tax and legal news

We would like to inform you that we have moved to new premises. From Monday, 9 December 2019, we will be in the new office at Hybernská street 1009/24 (Hybernská Center, 6th floor), Prague 1.

For the first time, the Supreme Administrative Court decided on a case related to proving the origin and source of income (judgement no. 9 Afs 64/2019 - 52 dated 13 June 2019).

The European Commission approved using the blanket reverse-charge regime by the Czech Republic for a limited period which starts from 1 July 2020 and lasts until 30 June 2022. All taxable supplies regarding goods and services where a single transaction is over CZK 450,000 (EUR 17,500) will be subject to the regime.

On 24 September 2019, the Chamber of Deputies approved the original version of the proposed amendments to the extension of exemption from real estate acquisition tax to the first paid acquisition of a unit (a flat) in a family house. Because of the amendment, those who buy a new flat in a family house, can claim exemption from real estate acquisition tax.

With respect to the amendment to the Electronic Registration of Sales Act (the ERS or the ERS Act), an amendment to the VAT Act was approved. According to the amended VAT Act, some services and goods, such as water and sewage charges, audio books, and draft beer, were moved to the lowest, ten-percent VAT rate.

The amendment to the Electronic Registration of Sales Act extends the obligation to use electronic registration to the rest of the branches that were exempt so far. The affected ones are craftsmen, lawyers, accountants, doctors or taxi drivers. It is the third and fourth phases of the ERS.