CESOP

In a new attempt to detect and prevent VAT fraud in the e-commerce market, the EU will implement a Central Electronic System of Payment information (CESOP).

Payment service providers will need to provide details on cross-border payments to CESOP, which should allow tax authorities to detect potential VAT fraud. The rules are aimed at screening both EU and non-EU sellers. The contemplated effective date of the system is January 1, 2024. The scope of the rules is broad. Besides governing providers that fall under the more common definition of payment service provider, they may have direct implications for others operating in the e-commerce market and even for financial institutions that do not process VAT-taxed transactions. 

Would you like to receive more information about CESOP? Do you need assistance implementing the new regulations? Meijburg & Co would be happy to discuss these with you. Feel free to contact one of our specialists.

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