1. What is going live on 1 January 2024?
Effective 1 January 2024, the European Union is introducing a new tax reporting requirement for payment service providers (PSPs), including card issuers, acquirers or other businesses processing payments.
As of this date, PSPs must monitor their merchants in relation to cross-border payments and report related payment data to the EU Member States. The data will be collected and centralised in a new EU database called the Central Electronic System of Payment information (CESOP), where it will be stored, aggregated and cross-checked with other EU databases. All information in CESOP will be made available to anti-fraud experts of the EU Member States.
2. Why?
3. Which PSPs are in scope of CESOP?
4. Which payment services and payments are in scope of CESOP?
5. What triggers the CESOP reporting obligation?
6. When is a payment cross-border for CESOP?
7. When is the threshold of more than 25 cross-border payments exceeded?
8. Who should record, report, where, how, what, and when?
9. Why is this development relevant for e-commerce merchants?
10. Final comments
Source: www.twobirds.com
