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

 

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