Taxation and Customs Union

New measures to fight VAT fraud using payment data

On 18 February 2020, the Council has approved new measures to transmit and exchange payment data in order to fight e-commerce VAT fraud.

The new regime on the exchange of payment data will reinforce the capacity of Member States to fight against e-commerce VAT fraud by launching a Central Electronic System of Payment information (CESOP). As of 2024, CESOP will keep records of cross-border payment information within the EU, as well as payments to third countries or territories, for a period of five years. This will allow tax authorities to properly control the correct fulfilment of VAT obligations on cross-border Business to Consumer (B2C) supplies of goods and services.