Success for KSB in the proceedings before the European Court of Justice
The ECJ did not agree with the arguments of the Czech government, according to which Czech Radio is in a "triangular legal relationship" between the Czech state which instructs Czech Radio to perform tasks in the public interest consisting in the provision of public service broadcasting, and recipients of services, to whose expense the Czech state prescribes the mandatory fee set by law. According to the ECJ, even in the case that such tripartite legal relationship is given, there is no direct link between the public broadcasting service of Czech Radio, and this fee.
According to the ECJ decision, which will now be mandatory for Czech courts, such simply stated revenue from the license fees are not included in the coefficient for reducing VAT deduction.
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