Tax and legal news

The financial administration is carrying out inspections on the taxation of income from providing accommodation via Airbnb. The financial administration considers such income as income from providing accommodation services with an impact not only on income tax, but also on social security, health insurance, and VAT.

A proposal for the VAT amendment (with expected effectiveness from 2019) should introduce an obligation to retroactively adjust VAT deductions claimed on substantial repairs made to real estate if the real estate is transferred within 10 years of the repairs. This results in a reduced VAT claim.

From 2021, VAT exemption should always apply to renting residential premises, which means that landlords will not be allowed to claim VAT from related received supplies.

Entities registered in the Commercial Register are obliged to disclose their financial statements by uploading them in an electronic form into the Collection of Documents at their respective court maintaining the Commercial Register.

The amendment of tax laws upcoming in 2019 (we informed you about it in March) has passed the external comment procedure and is ready to be debated.

The proposed amendment to VAT, which should become effective from 2019, contains a number of changes related to the amendment of the EU VAT Directive or to the conclusions of European case law. Other changes relate to the amendment of the Electronic Record-keeping of Cash Sales Act and to a change to the tax rates of selected supplies.