As a result of the new law, payment service providers will have to report certain information related to payment transactions to the tax authorities from 1 January 2024. With the new obligations, the European Commission wishes to combat VAT fraud. The idea is to gain more insight and control over (digital) payment flows in the EU and the supplies or services provided.
From 1 January 2024, PSPs will be required to report data on payment transactions to the tax authorities on a quarterly basis. The tax authorities will then ensure that the relevant data reaches CESOP. The obligation applies to PSPs such as credit institutions, payment institutions, electronic money institutions and postal cheque and giro services.
Based on the law l, the reporting obligation concerns only data of cross-border payment transactions from EU-based payers to a payee (recipient) in another country. The reporting obligation applies if a PSP provides payment services that include more than 25 cross-border payment transactions to the same payee in a calendar quarter. Because PSPs are involved in payments, amongst other relevant information, they also have specific intelligence to identify the payee and the location of a payee (recipient) of a cross-border payment.
It is important that you start setting up an internal reporting system in time to comply with the CESOP reporting obligations considering that the tax authorities have the option to impose hefty fines for non-compliance.
20 December 2022 - The European Commission presented in July 2021 its ambitious Fit for 55 legislation package, which supports its commitment to reduce net greenhouse gas emissions within the EU by at least 55% by 2030 (compared to 1990). From an international trade point of view, the most important part of the package is the Carbon Border Adjustment Mechanism (CBAM).
12 december 2022 - The digitalization of the economy has been growing over recent years. The amount of goods and services offered on digital platforms has increased significantly. As of 1 January 2023, certain compliance aspects concerning digital platforms will be subject to change.
Do you perform fiscal activities abroad or are you a working expat? Then you have to deal with complex international regulations. Do you know which tax regulations you must comply with? The specialists from Forvis Mazars can help you with this. They explain the tax implications of your international activities clearly, so that you can maximise the opportunities for your business.
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