The EU has introduced a regulatory framework for Payment Service Providers (PSPs) to report cross-border payment information to combat VAT fraud in the E-commerce sector. PSPs are required to collect, process, and transmit payment information to tax authorities. The framework includes the Central Electronic System of Payment Information (CESOP) to store and analyze the data. PSPs responsible for reporting include credit institutions, e-money institutions, payment institutions, and post office giro institutions. The reporting mandate applies to cross-border payments, where the payer and payee are in different jurisdictions. PSPs must report when processing more than 25 cross-border payments to the same payee within a quarter. Reporting obligations depend on the PSP’s location and the location of the payer and payee. Reporting of transactional data is required from January 1, 2024, on a quarterly basis.
Source 1stopvat
