In judgement C-660/16 Kollross, the CJEU assessed the possibility of refunding a VAT deduction on a prepayment made if the supply will no longer take place and the anticipated supplier is insolvent. The opinion of the CJEU may be, in certain situations, contrary to the rules set by the Czech VAT Act.
In case C-295/17 MEO, the Advocate General of the CJEU assessed the compensation regime in the event of a premature termination of a service level agreement for a predefined period of time. Based on the analysis, the compensation should be subject to value added tax in many cases. However, the practice in the Czech Republic is markedly different in this respect. It remains to be seen whether the CJEU will follow the opinion of the Advocate General.
The article is part of dReport – July 2018, Tax news; Grants and investment Incentives.
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