VAT in the EU Countries
FP-FdphPAcad. year: 2020/2021
EU regulation of VAT. Principles and rules of the correct assessment of value added tax for transactions of Czech business entities within the EU. Tax optimisation. Correct assessment of the taxable person, taxable transaction, place of transaction, chargeable event and chargeability of VAT, tax base, exemptions and deductions. The role of the ECJ in the application of Czech legislation and the Council Directive.
Learning outcomes of the course unit
After completing the course, the student will gain a comprehensive knowledge of the application of VAT to intra community business transactions between entities within the EU. The student will be closely acquainted with Council Directive 2006/112/EC on the common system of value added tax, its consequences and pertinent issues. In a specific case, the student will be able to apply correctly either the Czech VAT Act, or the Directive. Furthermore, the student will comprehend the role of the European Court of Justice and its case law related to VAT and its effect on Czech business entities.
To successfully take the course it is necessary to have a detailed knowledge of the principles of value added tax in the Czech Republic, and the student should also have a knowledge of accountancy and tax records, an ability to navigate financial statements and a basic knowledge of income tax.
Recommended optional programme components
Recommended or required reading
Zákon č. 235/2004 Sb., o dani z přidané hodnoty (CS)
Směrnice Rady 2006/112/ES ze dne 28. listopadu 2006 o společném systému daně z přidané hodnoty (CS)
Nařízení Rady č. 282/2011 ze dne 15. března 2011, kterým se stanoví prováděcí opatření ke směrnici 2006/112/ES o společném systému daně z přidané hodnoty (CS)
KUBÁTOVÁ, Květa. Daňová teorie a politika. 6., aktualizované vydání. Praha: Wolters Kluwer, 2015. ISBN 978-80-7478-841-3. (kap. 12 Daně ze spotřeby) (CS)
DRÁBOVÁ, Milena, Olga HOLUBOVÁ a Milan TOMÍČEK. Zákon o dani z přidané hodnoty: komentář. 6. aktualizované vyd. Praha: Wolters Kluwer, 2015. 969 s. ISBN 978-80-7478-740-9. (EN)
Portál Soudního dvora Evropské unie (http://curia.europa.eu/jcms/jcms/j_6/) (CS)
SCHELLEKENS, M. European Tax Handbook 2015. Amsterodam. IBFD. June 2015. 1044 s. ISBN 978-90-8722-313-7. (CS)
BENDA, Václav a Milan TOMÍČEK. DPH u intrakomunitárních dodávek a dovozu a vývozu zboží: praktické postupy uplatňování daně s využitím příkladů. 6. aktualizované vyd. Praha: BOVA POLYGON, 2015. ISBN 978-80-7273-174-9. (CS)
GALOČÍK, Svatopluk a František LOUŠA. DPH a účtování: přeprava, dovoz, vývoz, služby. 7. aktualizované vyd. Praha: Grada Publishing, 2017. ISBN 978-80-247-5838-1.
BENDA, Václav. DPH při obchodování se zbožím v rámci EU a se třetími zeměmi. Praha: Svaz účetních, 2016. Metodické aktuality Svazu účetních. ISBN 978-80-87367-68-1.
Planned learning activities and teaching methods
The course includes lectures and practical lessons. The lectures focus on a concise explanation of the Act on Value Added Tax and a detailed analysis of individual provisions of Council Directive 2006/112/EC on the common system of value added tax. The seminars aim at the practical use of the knowledge gained through the lectures, and the analysis and solution of specific practical cases.
Assesment methods and criteria linked to learning outcomes
It is necessary to fulfil the following conditions to gain the credit:
1. Active participation in seminars.
2. Completing the credit test with a mark of at least 50% out of the total number of points (45 minutes; maximum 20 points).
The examination is in writing and is focussed on practical examples from the area of VAT primarily on intra community transactions. To pass the examination it is necessary to gain at least 50 % of the total number of points available.
The written examination (the test contains 20 questions; it is necessary to get a minimum of 10 points; the test lasts 20 minutes)
- correct answer (1 point)
- no answer (0 points)
- incorrect answer (- 1 points)
The overall assessment is made up with equal weighting of the assessment from the credit test.
Language of instruction
1. Introduction to the issues – VAT in the context of EU law
2. VAT – structural elements of tax, VAT in the tax systems of EU member states (comparison), developing trends, etc.
3. Subjects in VAT (including registration) – including the basic premises in Council Directive 2006/112/EC
4. Place of transaction – including the basic premises in Council Directive 2006/112/EC
5. Date of taxable supply – including the basic premises in Council Directive 2006/112/EC
6. The right to deduction – including the basic premises in Council Directive 2006/112/EC
7. Tax documents (requisites, etc.) with the emphasis on documents relating to third country and intra community transactions – including the basic premises in Council Directive 2006/112/EC
8. Tax inspection (general + emphasis on VAT issues relating to third country and intra community transactions)
9. Carousel fraud and instruments against it
10. Council Directive 2006/112/EC (selected parts - I)
11. Council Directive 2006/112/EC (selected parts - II)
12. VAT in the EU countries – selected institutes and questions (Mini One Stop Shop, work with case-law, etc.)
13. DPH – current issues
The course aims to provide students with knowledge of the functioning of the VAT system in the EU countries, the general principles of law and the principles specific for EU law, and the effects of the ECJ procedure. The students will learn how to correctly assess tax liability and how to use different means of tax optimisation. They will also learn about different VAT-related administrative obligations of subjects engaging in intra community transactions.
Specification of controlled education, way of implementation and compensation for absences
Attendance at lectures is not compulsory but is recommended. Attendance at seminars is compulsory and it will be monitored by the lecturer. Means of compensation for absences depends on the individual choice of the lecturer.