Tax Newsletter - Archive
Forvis Mazars Tax View - archive of tax articles
Stricter EU Rules Ahead for Posted Workers
The European Union is moving closer to completing the long-awaited revision of the rules on the coordination of social security systems. In July, the European Parliament approved amendments to Regulations (EC) No 883/2004 and 987/2009, which concern, among other areas, the posting of employees to other Member States. The new rules will introduce stricter conditions and additional administrative obligations for employers, as well as greater scrutiny of A1 certificates. The revision also covers other areas of social security coordination; in this article, however, we focus on the changes relating to posted workers.
The General Financial Directorate Specifies the Method for Determining the VAT Base for Donated Goods
The General Financial Directorate (the ‘GFD’) issued updated Information on the application of VAT to the free-of-charge supply of goods (the ‘Information’), effective from 1 July 2026. It replaces the previous guidance from 2023. The new Information does not change the VAT rules themselves but explains in more detail how to determine the VAT base when goods are donated and sets out clearer requirements for supporting evidence. The Information is especially relevant for companies that regularly donate unsellable stock, seasonal collections or goods with limited commercial use.
Changes to Employee Benefits Effective as of January 1, 2027
At its 25th meeting on July 15, 2026, the Chamber of Deputies approved, in its third reading, the government’s draft Act on sales records, which also includes an amendment to Act No. 586/1992 Coll., the Income Taxes Act (hereinafter referred to as the “amendment”). In addition to the obligations related to sales records, this amendment also regulates employee benefits and revises tax credits.
EET 2.0 Is Approaching. How Should You Prepare?
Several years after the abolition of the original electronic sales records system, this topic is returning in the form of a project referred to as EET 2.0. The Government has prepared a modernised version of sales records which, according to its proponents, should help reduce the grey economy, support a fair business environment and, at the same time, reduce the administrative burden compared with the original system.
The Supreme Administrative Court’s Current View on the Tax Deductibility of Interest in a Downstream Merger
The Supreme Administrative Court has, on numerous occasions in the past, has ruled on the tax deductibility of interest on acquisition financing in so-called “upstream mergers,” in which the parent company becomes the successor company to the dissolving subsidiary. In light of the latest case law from the Supreme Administrative Court, it has also decided on the deductibility of interest in a “downstream” merger, in which the parent company is the dissolving entity to the successor subsidiary.
Taxation of Prostitution: Even the World’s Oldest Profession Has Tax Implications
At first glance, the question of whether income derived from prostitution can be taxed may seem like a marginal tax-law curiosity. In reality, however, recent case law of the Czech Supreme Administrative Court (hereinafter “SAC”) has opened up a much broader issue: where the moral assessment of a particular activity ends and the standard application of tax law begins.
Publication of Forms for the Top-up Tax
New Developments in the R&D Tax Deduction from 2026
As of 2026, significant changes have taken effect in the area of tax incentives for research and development (R&D). As of 2026, significant changes will take effect in the area of tax incentives for research and development (R&D). The amendment to the Income Taxes Act primarily changes the method for calculating the deduction, newly introduces the concept of a deduction groupunit, and at the same time extends the period for claiming unused deductions.
The Topic of Bad Debts and Unpaid Receivables in VAT Will Become Even More Important from 2027
The planned VAT changes in the area of bad debts and unpaid receivables linked to the Electronic Sales Reporting package (EET 2.0) will be relevant for many VAT payers, whether acting as creditors or debtors. The amended rules present an opportunity to improve cash flow on the creditor side, while at the same time increasing potential risks on the debtor side.
Proposed Changes to the Taxation of Individuals in Connection with the Introduction of EET 2.0
On 4 May 2026, the Czech government approved the draft Act on the Registration of Sales and on amendments to certain related acts, referred to as the EET 2.0 project. In addition to introducing a new legal framework for electronic sales registration, the proposal also contains relatively extensive amendments to the Income Tax Act. These changes affect not only entrepreneurs, but also employee benefits, tax reliefs and the taxation of tips.