CESOP: new reporting requirements for PSPs

Payment Service Providers (“PSPs”) that operate in Europe will need to comply with new record keeping and reporting obligations if they are involved in cross-border payments. These PSPs will have to keep registers with detailed information on cross-border payments that they have to share with local tax authorities on a quarterly basis. The data will be included in a European database called Central Electronic System Of Payment Information (“CESOP”). The aim of this CESOP reporting obligation is to combat VAT fraud in cross-border e-commerce transactions. The reporting obligation will enter into force on 1 January 2024. To comply with the new rules, PSPs should start setting up their systems and processes. Would you like to know whether your organization is affected and what you can do? Below you will find answers to frequently asked questions.