Payment Service Providers (“PSPs”) in the EU will be required to keep electronic records of payment data for cross-border payments and to exchange these records with a newly established central EU-database. The purpose of this new reporting obligation is to combat VAT fraud. The proposed rules will take effect from 1 January 2024, and create additional administrative requirements for European PSPs.
- In case of 25 or more cross-border payments per payee, an obligation arises for the PSP to keep records of payment data in electronic registers and to share these registers with local tax authorities.
- The local tax authorities in turn exchange these registers with the newly established Central Electronic System of Payment information (“CESOP”).