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European Council announces new measures to fight VAT fraud

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.



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