On 5 May 2023, the government submitted to the Luxembourg
Parliament the Bill of Law 8207
to implement Council Directive (EU) 2020/284 amending the VAT
Directive1 ("Bill").
The Bill introduces new obligations for payment service
providers to keep records of the "cross-border" payments
they process and their beneficiaries, and to report the collected
data to the Luxembourg tax authorities. The data collected will
then be stored and processed before being centralised in a European
database called Central Electronic System Of Payment Information
("CESOP") and made available to the
Member States' anti-VAT fraud agents.
The payment service providers include payment institutions,
credit institutions, electronic money institutions and post office
giro institutions that are established in Luxembourg
("PSP").
