Starting from Q1 2024, all EU Payment Service Providers (PSPs) will be required to report on a quarterly basis the relevant cross-border payments to their local tax authority. The Central Electronic System of Payment information (CESOP) imposes new reporting obligations on PSPs to fight against VAT fraud.
In practice, PSPs must transmit information on cross-border payments originating from Member States and on the beneficiary (“the payee”) of these cross-border payments. This measure aims to detect possible e-commerce VAT fraud carried out by sellers established in another Member State or in a non-EU country.
Listen to our on-demand webinar with tax experts from Regnology, PwC Netherlands as well as ING where we address: