Why CESOP?
Improve VAT collection in the EU by providing local tax authorities with an additional tool to identify business transactions and payments within the EU; particularly, to target those businesses trading cross-border and not registered for VAT.
For most cross-border transactions, payments are executed through payment service providers (PSP) which hold specific payment information (inserted by the Payer) to identify the recipient (Payee). Such information is key for tax authorities to detect fraudulent business activities.
What?
Identification and quarterly reporting of reportable transactions to local tax authorities by the in-scope PSP and ultimately to a new EU database: CESOP (Central Electronic System of Payment Information).
Who?
Credit institutions (including fully licensed banks), E-money institutions, Payment institutions and Post-office giro institutions.
When?
Application of the regime starts on 1 January 2024, with a first reporting deadline on 30 April 2024 (covering payments in scope during first quarter 2024).
End-to-end reporting and filing solutions
- Production of CESOP reports reflecting local requirements of each EU Member State (where required) and based on your quarterly payments data.
- (Machine-to-machine wherever possible) submission from your CESOP reporting solution to tax authorities will be the privileged way of submitting CESOP reports.
Assessment - Scope and data gap analysis
Based on your business model, internal organisation, and payment systems:
- identification of reportable transactions based on data retained internally,
- access to information and ability to extract and cleanse data (aggregation for threshold calculation/ consolidation of data extracted from different payment systems), and
- correcting or completing information after extraction, and mapping with mandatory information to be transmitted throughout CESOP reporting.
Implementation
Definition of your target governance and operating model around CESOP, drafting of your internal policies and procedures to ensure that CESOP requirements are embedded into your day-to-day operations.
Staff training
Defining the key persons within your organisation in charge of this new reporting regime and training them on the latest CESOP developments and operational challenges.
Key features of our offering
- Highest security and confidentiality standards
- Reliable technology solutions
- A network of know-how
Highest security and confidentiality standards
Handling of your client data requires the utmost diligence, confidentiality, and security measures.
This is especially true for payment service providers which are subject to strict professional secrecy standards enforced by the regulator. That is why our services will be operated by PwC Regulated Solutions S.à r.l., an ISO-27001-certified entity supervised by the Luxembourg regulator. The services are supported by a technology solution deployed on proprietary PwC’s servers, further enhancing data security in a protected environment.
Reliable technology solutions
Given the large data volumes involved with CESOP reporting, we propose a highly efficient and reliable reporting engine. Our solution also features a proprietary front-end from PwC to provide a user-friendly interface for the reporting process. The interface enables you to monitor and manage the CESOP filings and submissions.
A network of know-how
PwC offers you access to our in-country CESOP SMEs who can bring filing assistance and local expertise to the table.
Contact us
Murielle Filipucci
Tax Partner, Global Banking & Capital Markets Tax Leader, PwC Luxembourg
Tel: +352 49 48 48 3118
Nenad Ilic
Tax Partner, Banking & Capital Markets Tax Leader, PwC Luxembourg
Tel: +352 49 48 48 2470
