CESOP and payment service providers’ new reporting obligations from 2024
Starting in 2024, payment service providers facilitating cross-border payments in the EU will be compelled to transmit data on international payments originating from the EU to the upcoming Central Electronic System of Payment Information ‘CESOP’, a centralised database accessible to EU tax authorities.
Under the new obligations, institutions and businesses offering payment services will need to monitor the beneficiaries of cross-border payments and submit CESOP data on payees receiving more than 25 cross-border payments per quarter.
This new reporting liability for payment services providers is closely linked to the fight against VAT fraudsters as the information transmitted to the centralised database will be cross-checked with other EU tools and made available to Eurofisc to curb cross-border VAT breaches in the e-commerce sphere.
Institutions impacted by these measures must start reporting data on 1 January 2024.