New rules for exchange of payment data – a measure to combat VAT Fraud

On 18 February the EU Council adopted rules which will facilitate the detection of tax fraud in cross-border e-commerce transactions. These measures, which will apply as of 1 January 2024, complement the framework for e-commerce which will come into force on 1 January 2021 which will introduce new VAT obligations for online marketplaces and simplified VAT compliance rules for online businesses.

The Directive amending the VAT Directive as to regarding introducing certain requirements for payment services providers requires PSPs such as banks to keep records of cross-border payments related to e-commerce.

The Regulation amending Regulation (EU) No 904/2010 as regards measures to strengthen administrative cooperation in order to combat VAT fraud set out the details of how national tax authorities will cooperate in this area to detect VAT fraud and control compliance with VAT obligations.

 

Source: ec.europa.eu
})(jQuery)