Amendment to the VAT Act
The technical amendment to the VAT Act, which should substantially revise rules in various areas (voucher taxation, issuance of corrective tax documents, possibility of correcting tax imposed on bad debt etc) has not yet been debated by the Chamber of Deputies. The effect of the amendment will likely be postponed by several weeks (or months).

A similar scenario may also be expected with respect to the amendment to the Electronic Sales Records Act. The amendment should extend the application of the reduced tax rate to other supplies (draught beer, household cleaning services etc).

Judgments of the Court of Justice of the European Union
In two cases (C-422/17 Scarpa Travel and C-552/17 Alpenchalets Resorts), the Advocate General of the Court of Justice of the European Union (CJEU) defines the taxation of services when the special regime for travel services is applied. The Advocate General infers that advance payments should also be subject to tax (this requirements is not included in the Czech VAT) and, furthermore, substantially extends the definition of travel services (it is debatable how the CJEU will respond to the Advocate General’s controversial opinion and how this opinion could affect the interpretation of the Czech VAT Act).

Other interesting interpretations of the Advocate General may be found in case C-502/17 C&D Foods relating to the sale of a share in a subsidiary which was so far only passively held by the parent holding company. The Advocate General indicates that, under specific circumstances, a claim for the VAT deduction may also be considered for received supplied relating to the sale (in particular, advisory services provided to the holding company).

The article is part of dReport – October 2018, Tax news; Grants and investment Incentives.