Czech Republic: VAT deduction on anti-radar equipment; VAT treatment of transfer of technical improvements at lease end
Recent decisions of the Supreme Administrative Court relating to value added tax
Recent decisions of the Supreme Administrative Court relating to value added tax
The KPMG member firm in the Czech Republic prepared reports about the following decisions of the Supreme Administrative Court relating to value added tax (VAT) (read more at the hyperlinks provided below):
- VAT deduction on anti-radar equipment and GPS logbook: The court upheld the disallowance of the taxpayer’s VAT deduction on the purchase of (1) anti-radar equipment finding it was not used for economic activity and did not protect the taxpayer’s property and (2) a GPS logbook because the taxpayer did not submit the logbook to the tax administrator on the grounds of personal data protection. Read a December 2023 report
- VAT treatment of transfer of technical improvements at lease end: The court held that a transfer of technical improvements (carried out by a lessee at their own expense) to the lessor for compensation at the termination of the lease did not constitute a service (i.e., construction and installation work) for VAT purposes. Accordingly, the reverse charge mechanism did not apply. Read a December 2023 report
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.