CESOP: New Reporting Requirements For PSPs

Payment Service Providers ("PSPs") that operate in Europe will need to comply with new record keeping and reporting obligations if they are involved in cross-border payments. These PSPs will have to keep registers with detailed information on cross-border payments that they have to share with local tax authorities on a quarterly basis. The data will be included in a European database called Central Electronic System Of Payment Information ("CESOP"). The aim of this CESOP reporting obligation is to combat VAT fraud in cross-border e-commerce transactions. The reporting obligation will enter into force on 1 January 2024. To comply with the new rules, PSPs should start setting up their systems and processes.