As of 1 January 2024, a payment service provider needs to keep records of cross-border payments if the payer is located in one EU Member State and the payee is located in another EU Member State or in a third country (outside the EU).
Payment service providers should report data about the cross-border payments on a quarterly basis to the tax authorities if more than twenty-five cross-border payments have been performed to the same payee in one calendar quarter.
The data should be reported in XML format by the end of the month following the quarter. The first quarterly report (for January-March 2024) is due by 30 April 2024.
The CESOP obligation generally affects EU-based credit institutions, electronic money institutions, post office giro institutions and payment institutions. Marketplaces that collect and keep funds in their own name before distributing them to the payee also qualify as payment service providers for CESOP purposes.
KPMG Hungary is happy to provide support in registration, preparation and submission of these reports.
