NSS ruling on abuse of right in property rental chain with VAT denied.

• The Supreme Administrative Court rejected the claim of abuse of right in the case of chaining the lease of real estate with VAT
• The case involved a woman who purchased land with a house in June 2020 and claimed a VAT deduction of 2.4 million CZK
• She then leased the property to another company and applied VAT to the lease
• The company subleased the property to an individual for long-term residence, who was not a VAT payer
• The tax administrator considered the woman’s actions as abusive and revoked her VAT deduction
• The Supreme Administrative Court overturned the decision of the Appeal Financial Directorate, citing procedural errors and lack of evidence of abuse of right
• The court emphasized the importance of following procedural rules and the burden of proof on the tax administrator
• The court did not comment on the lease model and sublease, but noted that such choices by businesses can be rational in certain contexts.

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.

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