SAC Verdict Upholds Interest Rate on Retained VAT Deduction: Closing Chapter on Case Law

• SAC ruled that the interest rate on retained VAT deductions for 2017-2020 was in line with EU law
• Interest rate on withheld tax deduction introduced in 2015 after SAC decision in Kordárna case
• Interest rate increased to 2% + repo rate in July 2017, changed again in January 2021
• SAC concluded that 2% + CNB repo rate was sufficient to cover interest expense for a loan in 2017-2020 period
• Taxpayers who disagreed with interest rate took tax administration to court, but SAC ruled in favor of tax administration

Source: danovky.cz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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