Czech Republic: VAT perspective on early termination of energy supplies; VAT treatment of promotional events
Value added tax (VAT) treatment of promotional events
Value added tax (VAT) treatment of promotional events
The Directorate-General for Finance (Generálního finančního ředitelství) confirmed that compensation for the early termination of energy supplies (heat, electricity, gas, etc.) or the failure to deliver an agreed quantity is considered the provision of a service and therefore a taxable supply.
Read a June 2022 report prepared by the KPMG member firm in the Czech Republic
In another VAT-related development, the Supreme Administrative Court concluded that a company that organised a promotional event was not entitled to the refund of input VAT on subcontracted supplies. According to the court, these involved the provision of travel services.
Read a June 2022 report prepared by the KPMG member firm in the Czech Republic
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.