European Commission Introduces CESOP to Combat E-commerce VAT Fraud

• The European Commission has introduced new rules to combat VAT fraud in EU member states.
• The rules aim to use aggregated payment information from the e-commerce sector to address the VAT gap.
• The VAT gap refers to the difference between the expected VAT and the actual amount collected, which can be caused by various factors.
• The latest EU VAT Gap report shows that EU member states lost €61 billion in VAT in 2021.
• However, there has been some improvement in closing the VAT gap, with Italy and Poland showing significant decreases.
• VAT fraud remains a significant issue, as highlighted by Operation Admiral, which filed charges against individuals and companies involved in tax fraud.
• The Central Electronic System of Payment information (CESOP) is a new measure implemented to combat the VAT gap.
• The EC’s initiative emphasizes the importance of sharing information to address financial fraud.

Source: fintechfutures.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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