Brussels relies on payment companies to combat VAT fraud

• The European Union plans to tackle VAT fraud through a central database.
• Payment service providers will be required to report international transactions from next year.
• Concerns have been raised that the measure is too broad and that many countries are not ready for it.
• Payment companies are required to register and report payment data from 1 January, regardless of the amount.
• The Dutch Banking Association has raised concerns about exempt services being included in the reporting requirement.
• The size of the VAT fraud in the EU has decreased in recent years.
• Some EU countries have not yet completed their national legislation for the reporting requirement.
• Uncertainty remains about how certain EU countries will receive the required payment data.
• The implementation of the reporting requirement in other EU countries may affect businesses.
• Dutch banks and the Dutch Tax Authority are ready for the central database, but reporting must be done to the tax authority of the recipient country.

Source: nextens.nl

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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