- From 1 January 2024, all payment service providers operating in the EU must record and report transactional data of cross-border payments in every EU Member State where they provide certain payment services via CESOP.
- The CESOP regulations also apply to businesses in the Middle East providing payment services in EU Member States.
- ME businesses should assess the impact of CESOP reporting and implement measures to become CESOP compliant.
- The data gathered will be centralized within CESOP to support efforts to close the VAT gap in the EU.
- ME businesses providing payment services in the EU should determine if they are in scope of CESOP, assess the operational impact, and prioritize compliance.
- CESOP reporting obligations apply to payment service providers, including those benefiting from the small payment institutions exemption.
- PSPs with reportable data must transmit it every calendar quarter to the tax authorities in their home and host Member States in a standardized XML format.
- There could be potentially reporting obligations in 27 different EU Member States for PSPs, each with different XML formats and requirements.
Source: www2.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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