The EU Parliament’s ECON committee has published final reports on enhanced administrative measures to tackle VAT fraud and VAT directive amendments requiring payment service providers to keep records of cross-border e-commerce transactions.
The first report (bit.ly/35cbDdB) covers amendments to the administrative cooperation regulation, introducing measures to tackle VAT fraud through enhanced sharing of VAT-relevant payment information between EU tax administrations and law enforcement bodies from 1 January 2022. The information collected will be stored in a new central electronic system of payment information (CESOP) for a period of five years.
The report inserts an additional requirement for the Commission to be able to conduct visits in member states to evaluate the effectiveness of their cooperation arrangements on cross-border VAT fraud. It also specifies further information to be included in the Eurofisc annual report about controls carried out by each member state.
The second report (bit.ly/2qBJYUi) covers amendments to the VAT directive, requiring payment service providers to keep records of their cross-border e-commerce transactions for a period of three years.
This report inserts a further monetary threshold to ensure that payment service providers are only required to retain records on commercial transactions. This means the reporting requirement will be triggered either when the total number of payments received by a given payee in a calendar quarter exceeds 25, or by transfers of at least €2,500 in a single payment transaction. This amending VAT directive will apply from 1 January 2024.
The new regulation and directive were first proposed by the Commission in December 2018. ECOFIN reached political agreement on the amendments at its meeting on 8 November 2019.
The EU Parliament’s ECON committee has published final reports on enhanced administrative measures to tackle VAT fraud and VAT directive amendments requiring payment service providers to keep records of cross-border e-commerce transactions.
The first report (bit.ly/35cbDdB) covers amendments to the administrative cooperation regulation, introducing measures to tackle VAT fraud through enhanced sharing of VAT-relevant payment information between EU tax administrations and law enforcement bodies from 1 January 2022. The information collected will be stored in a new central electronic system of payment information (CESOP) for a period of five years.
The report inserts an additional requirement for the Commission to be able to conduct visits in member states to evaluate the effectiveness of their cooperation arrangements on cross-border VAT fraud. It also specifies further information to be included in the Eurofisc annual report about controls carried out by each member state.
The second report (bit.ly/2qBJYUi) covers amendments to the VAT directive, requiring payment service providers to keep records of their cross-border e-commerce transactions for a period of three years.
This report inserts a further monetary threshold to ensure that payment service providers are only required to retain records on commercial transactions. This means the reporting requirement will be triggered either when the total number of payments received by a given payee in a calendar quarter exceeds 25, or by transfers of at least €2,500 in a single payment transaction. This amending VAT directive will apply from 1 January 2024.
The new regulation and directive were first proposed by the Commission in December 2018. ECOFIN reached political agreement on the amendments at its meeting on 8 November 2019.
