CESOP 2024 : New EU Reporting Obligation
On January 1st 2024 came into effect a New Reporting Obligation for the EU Payment Service Providers :
- banks
- e-money providers
- payment facilitators, card issuers and online platforms
- post-office giro institutions
Being a part of the legislative anti-fraud package adopted by the European Commission in 2020, CESOP is a Central Electronic System of Payment information where will be collected, processed & stored cross-border transactions’ data related to e-commerce.
Since last Monday, the Payment Service Providers are required to :
- monitor the cross-border payments within the EU
- collect the information on the payees receiving over 25 cross-border payments per quarter
- report the related data to the Tax administration of the concerned EU Member State
The recorded data shall contain :
- BIC of the reporting Payment Service Provider
- Name of the payee
- VAT or Tax identification number of the payee
- IBAN of the payee or BIC of the PSP acting on its behalf
- Details of any cross-border payment : date & time / amount & currency / Member State of origin & of destination, as well as the method of their determination
- Same details of any refunds related to the cross-border payments
The first CESOP report is due in April 2024 for the 1st year’s quarter.
All declarations shall be submitted electronically to the competent EU Tax Authorities before the end of the month following each quarter’s end.
The list of the EU Tax portals was published by the European Commission on 18 December 2023 and it can be consulted under this link.
The EU Tax Authorities shall transfer to CESOP the data collected from the PSPs within two months after the reportable quarter’s end.
The CESOP obligation concerns payments done between two EU Member States or between a Members State & non-EU countries. The collected data being crossed with other declarations submitted across the EU (VAT returns, DAC7, etc.), any fraud of e-sellers, including undervalued importations & undeclared e-sales, will be easily detected by the EU Tax Authorities. This measure will help significantly reducing the VAT gap within the European Union.
