Central Europe Tax & Legal Highlights

Czech Republic

A new crime of obstruction of justice and its impact on submitting means of evidence

With effect from 1 February 2019, a new provision of Section 347a was introduced in the Criminal Code (Act No. 40/2009 Coll., the Criminal Code, as amended) stipulating a crime of obstruction of justice. Its substance is the effort to prevent obstruction of just decisions of a court or another body by proceedings participants supporting their statements by submitting forged or modified evidence.

Expansion of exemption from real estate acquisition tax

The Chamber of Deputies approved a legal provision amendment that will allow exempting from real estate acquisition tax also the first acquisition of an apartment unit in a detached house against payment, not just in an apartment building.

2020 Tax Package Proposal

Shortly after this year’s tax package was approved (with effect from 1 April 2019 – detailed information is available here), the Ministry of Finance has prepared a draft bill to amend the following tax legislation with effect from 1 October 2020.

VAT news in April

The Czech Tax Administration published an overview of most changes introduced by an amendment to the VAT Act. Case C-201/18 Mydibel assessing sale and lease back transactions in terms of VAT may have significant impacts on the lease market in the Czech Republic. In case C-275/18 Milan Vinš, the Court of Justice of the European Union (CJEU) assessed a potential exemption from VAT in the exports of goods. More information is available in the article.

New Reporting Duty for Tax Payers

The amendment to tax legislation, which is effective from 1 April 2019, introduces a new reporting duty for tax payers. Income that is generally subject to withholding tax in the Czech Republic but is exempt or not subject to taxation in the Czech Republic based on the applicable double taxation treaty will need to be reported to the tax authority. 

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Hungary

Positive development relating to VAT reclaims concerning uncollectible receivables

Based on the ruling (case C-246/6) made by the Court of Justice of the European Union at the end of 2017, taxpayers have had a theoretical opportunity to decrease their tax base by reclaiming VAT on transactions settled by them but financially not settled by their partner (“uncollectible receivables”). 

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Kosovo

The Administrative Instruction No. 01/2019 setting forth the requirements, conditions and procedures for the creation of the unique identification number.

This Administrative Instruction is part of steps taken in order to update business registration and identification in the Republic of Kosovo.

The Law for the prohibition of games of chance No. 06/L-155 has been published, as per the Resolution No.06-R-016 of the Parliament.

This Law is the final step towards the prohibition of Games of Chance, steps taken to curb the illegal activities occurring in the premises of such establishments. 

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Poland

Online cash registers – fiscal sales e-reports go live.

The lengthy legislative process has come to an end. The law amending the Value Added Tax Act and the Measures Act has been adopted by the President. A gradual revolution in fiscal sales reporting is about to begin. The time has come for online cash registers.

Changes to Country-by-Country Reporting laws in Poland – amendments to the Act on Exchange of Tax Information have been signed by the President.

The law amending the Act on Exchange of Tax Information with Other Countries and Other Acts (the “amended act”) was signed by the President on 11 April 2019. The previous version of the Act on Exchange of Tax Information entered into force two years ago
(on 4 April 2017). 

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Serbia

New rulings of the Ministry of Finance – Value Added Tax  

Computing VAT on а free of charge supply of spare parts by the service provider to the buyer as a part of a contractual penalty.

New rulings of the Ministry of Finance – International Taxation

The existence of a permanent establishment in the case of conclusion of a sale contract with buyers of goods by a non-resident taxpayer.

New rulings of the Ministry of Finance – Corporate Income Tax

Recognition in the tax balance sheet of expenses that include computed value added tax.

New rulings of the Ministry of Finance – Accounting Law

Electronic signing of the inventory report and accompanying documentation.

New rulings of the Ministry of Finance - Law on Fiscal Cash Registers

Eliminating an error in the fiscal cash register in case when a complaint for a good purchased in one retail facility can be made in another retail facility.

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Slovakia

Brexit and its implications from the tax perspective. Will it have an impact on you?
 
The Court of Justice of the European Union (CJEU) has ruled in a case regarding the granting of an A1 certificate to nationals of third countries residing legally in a Member State

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Previous editions

• Central Europe Tax&Legal Highlights, March 2019 (PDF)
  
• Central Europe Tax&Legal Highlights, February 2019 (PDF)
• Central Europe Tax&Legal Highlights, January 2019 (PDF)
• Central Europe Tax&Legal Highlights, December 2018 (PDF)
• Central Europe Tax&Legal Highlights, November 2018 (PDF)
• Central Europe Tax&Legal Highlights, October 2018 (PDF)
• Central Europe Tax&Legal Highlights, September 2018 (PDF)
• Central Europe Tax&Legal Highlights, August 2018 (PDF)
• Central Europe Tax&Legal Highlights, July 2018 (PDF)
• Central Europe Tax&Legal Highlights, June 2018 (PDF)
• Central Europe Tax&Legal Highlights, May 2018 (PDF)
• Central Europe Tax&legal Highlights, April 2018 (PDF)
• Central Europe Tax&Legal Highlights, March 2018 (PDF)
• Central Europe Tax&Legal Highlights, February 2018 (PDF)
• Central Europe Tax&Legal Highlights, January 2018 (PDF)
• Central Europe Tax&Legal Highlights, December 2017 (PDF)
• Central Europe Tax&Legal Highlights, November 2017 (PDF)