On September 6, 2017, Prague Regional Court of Justice issue a judgment, which deals with exercising the right to deduct VAT. This judgment, by reference to another judgment of the Supreme Court of Administration, states that the decisive fact for entitlement to VAT deduction is only whether or not performance actually took place and subjects in the tax chain are fulfilling their tax duties. On the contrary, in case it is not possible to determine the entity, which actually provided taxable performance to the taxpayer, it is not possible to deny the taxpayer entitlement to VAT deduction, unless it is also proven that the given performance was part of a tax fraud, which the person applying entitlement to VAT deduction knew of or must have known of.

Withdrawal from previous case law of the Supreme Court of Administration follows from the above. It is not a condition for the right to VAT deduction is to prove that the taxpayer received taxable performance from the supplier, who issued the tax invoice.

For a long time, the Supreme Court of Administration was of the opinion that for the right to VAT deduction, it is necessary to prove reception of taxable performance from a specific supplier. The Court of Justice of the European Union subsequently adopted a different opinion, however.