EU VAT payment data obligations for payment providers
- Nov 10, 2019 | Richard Asquith
EU Finance Ministers confirmed on 9 November requirements for payment providers to make available date on EU e-commerce transactions to help tax authorities identify VAT fraud. The new measures will come into force on 1 January 2024 – delayed from the original 2022 plan.
The ECOFIN meeting also confirmed non-resident businesses will gain the same VAT registration thresholds as resident businesses to help reduce compliance costs and benefit the operation of the Single Market. This will come into force in 2025. A central payment information storage database will be created for the use of tax authorities.
Credit card companies help to fight VAT fraud
The new obligations will compel credit and debit card issuers to provide tax authorities with data on cross-border e-commerce transactions. This will be provided to the anti-VAT fraud specialists at Eurofisc.
The European Parliament will need to confirm the measures.