The European Council has approved new measures to transmit and exchange payment data in order to fight e-commerce VAT fraud by launching a Central Electronic System of Payment information (CESOP).
According to the European Council, by 2024 CESOP will keep records of cross-border payment information within the EU, as well as payments to third countries, for a period of five years.
The aim is to allow tax authorities to properly control the correct fulfilment of VAT obligations on cross-border Business to Consumer (B2C) supplies of goods and services.
