EU cross-border payments reporting
From January 2024, Payment Service Providers (PSPs) will submit data on cross-border payments received by businesses from customers. PSPs will submit this data to the tax administrations in each European Union (EU) Member State in which they provide services.
This cross-border reporting requirement is part of a larger EU e-commerce Value-Added Tax (VAT) package designed to modernise current cross-border VAT procedures. The most important elements introduced to date include the VAT One-Stop-Shop (OSS) and VAT Import One-Stop-Shop.
These measures make it easier for businesses to meet their VAT obligations. They also help tax administrations to support compliant businesses by identifying VAT non-compliant businesses and VAT underpaid on cross-border transactions.
Next: Payment Service Providers (PSPs) that will need to report