- Special recording and reporting obligation for payment service providers for cross-border payments would be introduced in the value added tax (VAT) law effective 1 January 2024. The rule implements Council Directive (EU) 2020/284 (18 February 2020) and is intended to combat VAT fraud, particularly in the area of cross-border electronic commerce. The obligation applies to payment service providers that make more than 25 cross-border payments to the same payee per calendar quarter. Failure to comply with the obligation may result in a penalty of up to €5,000.
Source: KPMG
