- The Court of Justice of the European Union ruled that classifying Česká sít and its three branches as a ‘civil company’ by the Czech Republic is contrary to EU law, as this classification does not align with the legal requirements for VAT liability.
- Česká sít was incorrectly designated as the ‘appointed partner’ responsible for VAT on behalf of the entire company, despite the other partners also providing taxable services, which should be considered in determining VAT obligations.
- The ruling emphasized that deviations from civil law rules regarding representation by the other partners do not affect the application of VAT, reinforcing the legal distinctions necessary for VAT liability assessment.
Source Taxlive
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