Tax and legal news

Based on the VAT Action Plan, new methods of taxation on supplies of goods between member states should be introduced in the future (probably effective from 2022). The goal is to prevent tax evasion.

Last week, the Constitutional Court decided about cancelling some provisions of the Electronic Registration of Sales Act; the decision complies with requests of a group of members of parliament representing ODS and TOP 09. For tax payers who are not yet obliged to participate in the electronic registration of sales (the ERS), the most important thing is that the provisions which were supposed to start the third phase (from 1 March 2018) and fourth phase (from 1 June 2018) of the ERS have been cancelled, effective from 28 February 2018.

Based on the decision of the Supreme Administrative Court (SAC), the financial administration in September publicly accepted excluding VAT from the real estate tax base in cases where the tax was paid by the transferor and the transfer was executed between 1 January 2014 and 31 October 2016.

The financial administration published information on the tax obligations of providers of accommodation services via internet platforms such as Airbnb and others. Entities using such services should learn about the possible tax consequences.

Based on the amendment to the Income Tax Act effective from 1 July 2017, trust funds could be considered a parent company and – when meeting certain conditions – exemption from tax on received payments of profit shares from a subsidiary could apply, similar to parent companies which are joint-stock companies, limited liability companies, or a cooperative.

The financial administration published a very important opinion on 24 November 2017 which reflects the decision of the Supreme Administrative Court (SAC) on including (or not including) VAT in the agreed price when applying the correct procedure for determining real estate transfer tax.