Introduction
In a significant development set to take effect from January 1st, 2024, the European Union (EU) is tightening the reins on Payment Service Providers (PSPs). Under the CESOP (Cross-Border Electronic Services of Payment Providers) regulations, all EU PSPs will be mandated to record and report transactional data for cross-border payments they process.
Understanding Your Obligation:
If you’re a PSP operating within the EU and have received this letter from the NL Tax Authorities, it’s imperative to take action promptly.
Why Have You Received the Letter?
The NL Tax Authorities have anticipated that you, as a PSP, are subject to the reporting requirements imposed by CESOP.
Support and Guidance:
Recognizing the complexities and challenges of complying with CESOP, the NL Tax Authorities have set up a dedicated CESOP team to guide PSPs through the compliance journey.
Conclusion:
The NL Tax Authorities’ letter to PSPs regarding the obligation to record and report cross-border payments following PSP-CESOP is a clear indicator of the EU’s commitment to financial transparency and security.
Source: www.tpa-global.com
