Regulations
CESOP
The CESOP (Central Electronic System of Payment) regulation is a new reporting introduced by the European Union to combat VAT tax fraud related to e-commerce. The obligation will start on 1 January 2024
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CESOP in brief
CESOP is a complex system for monitoring and reporting transactions made with electronic payments for the purchase of goods or services. The reporting of each state will flow into a single centralized database at European level. The main objective of CESOP is to reduce tax fraud, in particular those related to fraud and VAT evasion at international level.
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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 allows to identify discrepancies or anomalies in the data provided by the companies or presumed as such, identifying possible cases of VAT evasion.
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The obligations
Payment Service Providers must report cross-border payments and their beneficiaries if at least 25 payments have been made in a quarter to the same beneficiary, through:
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Bank Transfers
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Direct Debits
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Money Remittances
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Made with Payment Cards
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Electronic Money
The communications must be sent to the Tax Agency of your country which will forward the information to the established European Commission.
In Italy, the CESOP communication must be submitted to the Revenue Agency via the Data Exchange System - SID.
In addition to communication, a register with a historical depth of three years must be maintained.
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The obliged subjects
Payment Service Providers established in the European Union are obliged to communicate the data:
Credit Institutions
Electronic Money Institutions
Payment Institutions
Mailers offering Payment Services
Marketplace