CESOP is a new system that will come into force on January 1, 2024, requiring EU payment service providers to provide quarterly transactional information on cross-border transactions to tax authorities. The system aims to improve the detection of VAT fraud and collection of tax revenues on cross-border sales of goods and services. The CESOP Directive amends the VAT Directive, and the reporting obligation applies to payments made in the context of credit transfers, direct debits, card payments, issuing of payment instruments and acquiring of payment transactions, and money remittances. The payer and payee locations are determined by the International Bank Account Number (IBAN) or another identification code, and the guidelines provide more guidance on which identifier should be used for each type of payment.
Source International Tax Review
See also CESOP – New articles in the EU VAT Directive 2006/112 applicable as of January 1, 2024
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