Reduction of value added tax (VAT) paid in the case of outstanding claims

On 8 May 2019, the Court of Justice delivered a preliminary ruling by the Supreme Administrative Court of the Czech Republic. The Supreme Administrative Court of the Czech Republic considered that the condition set out in Section 44 (3) of the VAT Act (in effect from 1 April 2019 in Section 46 (3) (h)), under which the debtor must be a taxpayer, if the payer wishes to make a correction, is contrary to Article 90 of Council Directive 2006/112/EC of 28 November 2006 on the Common System of Value Added Tax (the "Directive"). The Supreme Administrative Court of the Czech Republic found that this condition is inconsistent with EU law because it may prevent the correction of the tax base on the part of the creditor, without this being justified by the uncertainty as to whether the default is definitive.





Advokátní kancelář Žánová – Kunert, s.r.o.

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