1.8.2008
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News
Draft Amendment to the VAT Act
Pursuant to our information in the previous issue of Tax News, the Government presented a draft VAT Act to the Parliament of the Czech Republic. This long-prepared amendment primarily harmonizes the provisions of the Czech VAT Act with the provisions of Directive 2006/112/EC (the so-called Sixth Directive Recast) and provides suggestions for simplification and improvement of certain other provisions.
The most significant changes are as follows:
- The tax may be reduced if the taxpayer applies a wrong rate or tax exemption.
- Adjustment to definition of turnover – the operating business should be the decisive criterion for inclusion into turnover and not the manner of accounting on a particular transaction.
- The accounting terms “revenue” and “income” should be replaced by the term “fee” (or “consideration”) due to the said adjustment to definition of turnover.
- The place of supply for services to foreign parties operating a business (i.e. not only an entity registered for tax in another member state) should be determined pursuant to the registered office or principal place of business of the recipient of the service.
- The amendment suggests that rules for calculation of the factor reducing the input tax deduction be changed.
- The date of taxable supply for real estate transfers should be changed to the date on which the real estate is released to the transferee.
The amendment should take effect on 1 January 2009.
Other articles
5.8.2025
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News
Legal Advisory to Japanese Group Ushio on the Acquisition of a Division of ams-OSRAM
The KŠB team, led by partner Dagmar Dubecká and attorney Jana Guričová, provided legal advisory to Japanese company Ushio Inc., a global leader in semiconductor technologies and specialized lighting for the automotive and industrial sectors, in connection with its acquisition of the Entertainment& Industrial Lamps segment from the Austrian-based ams-OSRAM Group, a company with over a century of history.
28.7.2025
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News
Smetanova Litomyšl Comes to a Close with Music and a Message of Solidarity
This year’s edition of the Smetanova Litomyšl festival concluded with the concert Grand Finale – An American Story, held under the patronage of our firm. In addition to delivering a remarkable musical experience, the evening also served a charitable purpose: proceeds supported the Olga Havel Foundation (Výbor dobré vůle – Nadace Olgy Havlové), helping young people from disadvantaged backgrounds pursue their education.
8.7.2025
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News
Advising J&T on the preparation of another bond programme – the Europacity Berlin project.
KŠB provided legal advice to its long-standing client, the J&T group, in connection with the preparation of another bond programme, this time related to the Europacity Berlin project. The base prospectus has already been approved by the Czech National Bank, and the first final terms have been prepared for an issue in the amount of CZK 3 billion. The advisory team at KŠB included Josef Kříž, under the partner supervision of Martin Krejčí. Vlastimil Pihera.
