In mid-March the Court of Justice of the EU confirmed that the temporary assignment of employees to work for reimbursement is subject to value-added tax.
The approach currently present in the Czech Republic, where some taxpayers perceive the transaction as free of VAT if the employee is assigned to work for another employer under the provisions stated in the Labour Code, can thus hardly be retained. This information is very important today, in this time of emergency economy measures, because the cases where employees are assigned to work for another employer are more frequent.
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