From 1 January 2024, payment service providers established in the European Union[1] have to supply data on cross-border payment transactions to the tax authorities.[2] The new rules aim to reduce VAT fraud and ensure fair competition between businesses in international e-commerce.
Payment service providers subject to the obligation to supply data must retain information on cross-border payments and provide such information to the tax authorities on a calendar quarterly basis. The data provided in the report are collected by the tax administrations of each country and transmitted to the Central Electronic System of Payment Information maintained and operated by the European Commission (hereinafter referred to as CESOP). The information on payment transactions thus collected may then be used to assess and control tax risks.
[1] In Hungary, the scope of these payment service providers is defined in Section 183/B (1) of Act CXXVII of 2007 on Value Added Tax (hereinafter referred to as the VAT Act).
[2] The obligation to provide information is based on the amendment of the VAT Directive (2006/112/EC) and Sections 183/B to 183/D of the VAT Act.