VAT – new reporting obligations for cross-border payments

From October 13 this year payment service providers can test reporting in the CESOP system. The Ministry of Finance has launched a test environment in preparation for the upcoming changes. As of January 1, 2024, new regulations on reporting cross-border payments come into force. By the Act of April 14, 2023 amending the Act on Tax on Goods and Services and certain other acts, Chapter 2a was added to Section XI “Documentation”, containing new obligations for payment service providers.

The regulations are the result of the implementation of EU Directive 2020/284, which is part of the EU package aimed at combating VAT fraud in the field of electronic commerce/e-commerce. Imposing new obligations on taxpayers is often met with negative reception, but this time we are dealing with seemingly simple and necessary changes.

Who will be assigned new responsibilities?

The obligations arising from the new regulations apply to “payment service providers”, and therefore within the meaning of the provisions of the Payment Services Act, these include: domestic banks, branches of foreign banks, credit institutions, electronic money institutions and their branches, payment institutions and cooperative savings banks (SKOK). .

From the new year, the institutions mentioned above will be obliged to keep accurate records of payment recipients and cross-border payments for recipients receiving payment services corresponding to more than 25 payments in a quarter.

How to understand cross-border payments?

According to the new regulations, a payment is considered cross-border when the payer is located in the territory of an EU Member State and the recipient of the payment is located in the territory of any other country. However, this is not about physical presence on the territory of another country, but about meeting the conditions listed in the Act. Both the payer and the payee are “located” in a country when the IBAN, BIC or other identification code clearly identifies the identity and location of one of them in a given country.

What will be included in the register?

As we mentioned earlier, payment service providers will be obliged to keep records of recipients and cross-border payments. The register should contain the following data:
– BIC or other identification code uniquely identifying the payment service provider,
– name and surname or name of the payment recipient in accordance with the data held by the supplier,
– the number by which the payee is identified for tax or value added tax purposes, or another number by which the payee is identified for tax purposes, if available,
– IBAN or other identifier that clearly identifies the payment recipient and provides his location,
– where the payee receives funds without having a payment account – BIC or other identification code that uniquely identifies the payment service provider acting on behalf of the payee and provides its location,
– address of the payment recipient, if available, according to the data held by the supplier,
– data on cross-border payments and refunds identified as relating to cross-border payments.

The new regulations impose obligations only on payment service providers. The burdens associated with them do not seem to be particularly severe, and the aim of the regulations is to tighten the goods and services tax system in the e-commerce industry. The new year does not seem to be worse for taxpayers operating in it than the previous ones.


Dr Artur Oleś

Attorney, Tax Advisor, EMBA

Advocate, Tax Advisor, Doctor of Juridical Science. He specializes in issues related to tax optimizations, mergers and acquisitions, as well as criminal and fiscal penal law. Author of scientific publications devoted to, among others. tax ordinance, VAT and income earned through incentive plans in the form of shares and stock options. He has extensive experience and knowledge of law and taxation.

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