- The Supreme Administrative Court issued a judgment regarding the claim for VAT deduction from payments for future supplies
- The case involved a supplier who won a contract to deliver machinery to a buyer, with the supplier being owned by the same person who owned the buyer
- The tax authorities denied the VAT deduction, stating that the supplier did not prove the actual delivery of the machinery
- The supplier argued that some machinery could not be delivered at the time of the tax audit as they were to be manufactured later
- The Supreme Administrative Court emphasized that a VAT deduction from advance payments can only be claimed if the supplies are clearly defined at the time of payment
- The Court disagreed with the lower courts’ decision to deny the VAT deduction, as they did not address the supplier’s argument about the delayed delivery of some machinery
- The judgment is important for taxpayers claiming VAT deductions from advance payments, highlighting the need to prove knowledge or reasonable ignorance about the uncertainty of supply at the time of payment.
Source: pkfapogeo.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.
