News in Brief, June 2025

DOMESTIC BRIEFS

• In the e-Collection of Laws, the Ministry of Foreign Affairs has published its communication on concluding the Treaty between the Czech Republic and the Federative Republic of Brazil on Social Security (No. 134/2025), with effect for the Czech Republic from 1 November 2024. At the same time, communication on the Administrative Arrangement for the Implementation of this Treaty has been published under No. 135/2025.
   
• The Ministry of Finance has announced that the 1990 Treaty between the Czech Republic and the United Kingdom on the Promotion and Protection of Investments was terminated on 1 March 2025. (Published in the e-Collection of Laws under No.145/2025 Coll.). The validity of this investment agreement was terminated in accordance with its Article 14. Both parties have excluded the application of a sunset clause.
   
• The Ministry of Finance has announced that on 14 May 2025, a treaty between the Government of the Czech Republic and the Government of Tanzania was signed to avoid double taxation and prevent tax evasion and avoidance. Both countries will now follow the standard legislative process leading to the entry into force of the treaty.
   
• The Ministry of Labour and Social Affairs has announced that the Jenda mobile app is available in the App Store and Google Play. The app allows clients to keep track of the status of their applications now easily accessible in one place.
   
• In May, the senate debated a pair of bills to bring more clarity to the lobbying sector. The lobbying regulation bill and related amendments to other regulations from the Ministry of Justice are based on the recognition that lobbying is a legitimate part of public policymaking. A key tool for transparency is to be a public register of lobbyists and those lobbied, to be administered by the Ministry of Justice.

INTERNATIONAL BRIEFS

• The OECD has published an updated consolidated commentary on the GloBE model rules under Pillar 2, which incorporates the agreed administrative guidance issued by the OECD's Inclusive Framework from March 2022 to March 2025.
   
• The VAT Committee has discussed e-invoicing and the implementation of the VAT in the Digital Age (ViDA) package. Following the committee's meeting, the European Commission will prepare draft guidelines on e-invoicing. Changes to the reporting of imported goods under the Import One-Stop Shop (IOSS) regime have also been discussed. The monthly IOSS reporting should now include the total value of imported goods by the member state of consumption.
   
• The EU Council has reached agreement on a directive simplifying the collection of VAT on distance sales of imported goods. Now, foreign sellers and platforms will pay VAT on imports in the member state of destination (consumption) of the goods to encourage them to use the IOSS system. The directive now awaits consultation with the European Parliament and formal adoption by the EU Council.
   
• The KPMG EU Tax Centre regularly monitors changes in direct taxes in the EU and internationally. For a complete overview of the latest news and the possibility to subscribe, please click here.