New Reporting obligations for Payment Service Providers - VAT CRS

[Dandyline]

A Reporting obligations for Payment Service Providers as of 1 January 2024. Seems like PSPs will report VAT?

https://www.pwc.com.cy/en/publications/assets/indtu-n25-2022.pdf

 

[Martin Everson]

What the hell...CESOP?

This isn't just for VAT purposes. This is starting of EU version of AUSTRAC .

------- quote start

In brief

As of 1 January 2024, Payment Service Providers, established in the EU, will be required to keep electronic records of payment data for cross-border payments and report this information to local tax authorities. Local Tax authorities will ,in turn, exchange these data with a newly established central EU database called Central Electronic System of Payment Information (‘CESOP’). Each Member State’s tax authorities will have access to, allowing an authorized group of people (called ‘Eurofisc liaison officers’) to process and analyze those data for fraud purposes.

The PSP Directive has been introduced as part of an EU-wide regime to detect and combat VAT fraud within the framework of the digital economy, considering the difficulties in taxing cross-border e-commerce transactions in the digital era.

Details

I. To whom these new rules apply?

The new rules are aimed at all PSPs who fall within the definition of PSP, as outlined in the PSD2

Directive. In principle this includes:
• credit institutions
• payment institutions
• electronic money institutions, and
• post office giro institutions

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Get out of the EU while you still can

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[Jerry1911]

So for example Stripe Payments Europe Limited will report all transactions to the Irish tax authority which will share them with the EU using CESOP database, making it available for all EU countries to see?

 

[maxmoney]

stupid question, does it apply for UK payment processors now they are not part of the EU ?

 

[Dandyline]

Probably a way to impose MOSS Vat better.

 

[Martin Everson]

stupid question, does it apply for UK payment processors now they are not part of the EU ?

Not a stupid question at all. Since brexit withdrawal agreement UK has no agreement over financial services with EU. An agreement is still to be worked out. My guess is UK will have to partake in this in any future agreement covering financial services. Also sounds like that don't want to move too far away from EU rules either.

MSN

So for example Stripe Payments Europe Limited will report all transactions to the Irish tax authority which will share them with the EU using CESOP database, making it available for all EU countries to see?

That's how it seems .

 

[Newsecar]

Not a stupid question at all. Since brexit withdrawal agreement UK has no agreement over financial services with EU. An agreement is still to be worked out. My guess is UK will have to partake in this in any future agreement covering financial services. Also sounds like that don't want to move too far away from EU rules either.

MSN

That's how it seems .

I think the report happens only if you have more then 25 cross-borders transactions with the same payment service provider.

 

[wellington]

Ironic... taxing to death already, now trying to squeeze out more tax... to offset their populist vote buying.

 

[ShillGates]

more like big brother watching you, your credit card expenditure is no longer just between you and the bank, now its going to be exported to a central database, which will be used for other purposes too.

unf*****real