CESOP
Reporting
The CESOP (Central Electronic System of Payment) regulation is a new obligation introduced by the European Union to reduce VAT-related tax fraud connected to electronic commerce. The reporting will come on 1 January 2024
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CESOP in few words
CESOP is a complex system for monitoring and reporting transactions made with electronic payments to purchase goods or services. The reporting of each State Member will merge into a single database centralized at the European Commission. The main goal of CESOP is to reduce tax fraud related to international VAT fraud and evasion
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What is it for
Through CESOP, the EU Commission can automatically verify and compare the information provided by the different parties involved in the transactions; this makes it possible to identify discrepancies or anomalies in the data provided by companies or presumed to be such, identifying any cases of VAT fraud
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The obligations
Payment Service Providers must communicate Cross-border Payments and their payee if at least 25 payments have been made in a quarter to the same payee through:
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Credit Transfert
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Direct Debits
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Money Remittances
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Cards Payments
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Electronic Money
The PSP must send, each quarter, all data to the Tax Agency of your country, which forwards the information to the established European Commission.
In addition to the Reporting, PSP must manage Register with the last three years reported must be addressed.
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Financial Institutions
Financial Institutions
Below is the list of PSP involved:
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Credit Institutions
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E-Money Institutes
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Payment institutions
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Post-office giro institutions which provide payment services.