Taxation and Customs Union

Transmission and exchange of payment data to fight VAT fraud

On 18 March 2019, the European Commission published a survey for actors in  the payment industry in order to gather their views on the implementation of the legislative package on the transmission  and exchange of payment data in order to fight VAT fraud.

The survey is available on EU survey and will run until 17 April at 20.00 (CET). The goal of the survey is to gather input from the different actors of the payment industry regarding the new reporting obligations introduced by Directive (EU) 2020/284.

The results of the survey will be used to organise and feed into the work of the expert group. The survey also aims to give representatives of all payment service providers in the EU a possibility to express their views and contribute to the implementation of the law. As such, payment service providers and interested parties are strongly invited to answer the survey and provide their valuable contribution.

Background information

On 18 February 2020, the Council adopted a legislative package to request payment service providers to transmit information on cross-border payments originating from Member States and on the beneficiary (“the payee”) of these cross-border payments.

Under this package, payment service providers offering  payment services in the EU will have to monitor the payees of cross-border payments and transmit information on those who receive more than 25 cross-border payments per quarter.to the administrations of the Member States. This information will then be centralised in a European database, the Central Electronic System of Payment information (“CESOP”), where it will be stored, aggregated and cross-checked with other European databases. All information in CESOP will then be made available to  Member States’ anti-fraud experts via a network called Eurofisc.

The transmission of data must begin on 1 January 2024.

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