CESOP: Malta transposes new EU law for Payment Service Providers (PSPs)
As from 1st January 2024, new regulations were introduced new reporting requirements for Payment Service Providers (PSPs) mainly concerning cross-border payments originating from EU Member States. This new requirement follows the growth of electronic commerce which facilitates cross-border sales of goods and services to final consumers in another EU Member State where VAT may be due in that other member state in which the supplier is not established (thus not necessarily registered for VAT purposes in that other member state).
Such information will feed into a centralised European database, the Central Electronic System of Payment Information (‘CESOP’) where it will be stored, aggregated, and cross-checked with other European databases. This new reporting requirement was introduced to fight against cross-border VAT fraud particularly in the area of e-commerce. It gives tax authorities the necessary tools to detect and control fraudulent businesses who seek to exploit e-commerce opportunities in order to gain unfair market advantages.
In terms of legal notice Legal Notice 272 of 2023, PSPs established in Malta are required to register with the Malta Tax and Customs Authority (MTCA) by not later than the 25th of January 2024. The registration application is to be made electronically via the e-services page in the MTCA website.
Should you require further information in relation to these new changes, please get in touch with Michael Caruana on email@example.com.
Please note that this article is being published solely for informational purposes. It is imperative to note that this content neither constitutes nor should be inferred as legal advice or guidance. PKF Malta Limited explicitly disclaims any responsibility or liability for potential damages that may arise from the utilisation of this information as a substitute for professional legal advice or guidance.