CESOP - EU cross-border payments reporting

Overview

From January 2024, Payment Service Providers (PSPs) will submit data on cross-border payments received by businesses from customers. PSPs will submit this data to the tax administrations in each European Union (EU) Member State in which they provide services.

This cross-border reporting requirement is part of a larger EU e-commerce Value-Added Tax (VAT) package designed to modernise current cross-border VAT procedures. The most important elements introduced to date include the VAT One-Stop-Shop (OSS) and VAT Import One-Stop-Shop.

These measures make it easier for businesses to meet their VAT obligations. They also help tax administrations to support compliant businesses by identifying VAT non-compliant businesses and VAT underpaid on cross-border transactions.

Central Electronic System of Payment Information (CESOP) database

All tax administrations will send the data to a centralised European Union database, the Central Electronic System of Payment Information (CESOP). This data will be aggregated within CESOP and made available to designated staff within each tax administration. The data will be used to ensure that the correct amount of Value-Added Tax is being remitted in each Member State.

CESOP Workshop

The EU Commission CESOP held a FAQs workshop on 15 September 2023. Registration for this event was managed by the EU Commission.

The European Commission has also drafted a list of informative CESOP frequently asked questions.

Next: Payment Service Providers (PSPs) that will need to report