- The VAT CESOP directive is a mechanism of VAT oversight that will go into effect in January 2024.
- Payment service providers (PSPs) must report data related to cross-border payments in the EU.
- CESOP is part of a larger EU e-commerce VAT package that aims to modernize cross-border tax processes.
- The goal of CESOP is to recoup as much VAT as possible and crack down on VAT fraud.
- CESOP empowers tax authorities to detect fraudulent activities by sellers in other Member States and non-EU countries.
- Online businesses in the EU and worldwide that sell to EU customers are affected by the VAT CESOP directive.
- CESOP is a database that collects and processes payment information.
- The process involves submitting data as VAT transactional reporting.
Source: quaderno.io
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
