Poland: New reporting requirements for cross-border payment service providers beginning 2024

Legislation implementing the Central Electronic System of Payment Information (CESOP)—a centralized European system for collecting and exchanging cross-border payment information aimed at detecting and combatting value added tax (VAT) fraud in cross-border internet sales of goods and services—was published in the Polish journal of laws on 24 May 2023.

The new reporting requirements become effective 1 January 2024, and first CESOP reports must be filed by 30 April 2024 for the first quarter of 2024.

Under the new reporting requirements, domestic banks, foreign bank branches, credit institutions, payment institutions, and credit unions must maintain, store, and report on cross-border payments to the Head of National Revenue Administration, when the payment service provider makes more than 25 such payments to the same payee. A payment is considered a cross-border payment when the payer is located in a member state and the payee is located in another member state, in a third territory, or in a third country.

The reports must include:

• Bank identifier code (BIC) or any other identifier code that unambiguously identifies the payment service provider
• Name or business name of the payee, as it appears in the records of the payment services provider
• Number by which the payee is identified for tax or VAT purposes or another number by which the payee is identified for tax purposes, if available
• International bank account number (IBAN) or, if the IBAN is not available, any other identifier that unambiguously identifies and gives the location of the payee
• BIC or any other business identifier code that unambiguously identifies the payment service provider acting on behalf of the payee where the payee receives funds without having any payment account
• The address of the payee as it appears in the records of the payment services provider, if available
• Details of any cross-border payment and any payment refunds identified as relating to the cross-border payments, such as:
  • Date and time of the payment or of the payment refund
  • Amount and the currency of the payment or of the payment refund
  • Member state of origin of the payment received by or on behalf of the payee, the member state of destination of the refund, as appropriate, and the information used to determine the origin or the destination of the payment or of the payment refund
  • Any reference that unambiguously identifies the payment
  • Information that the payment is initiated at the physical premises of the merchant, if applicable

Payment service providers must keep electronic records of cross-border payments for a period of three calendar years from the tax year the payment was made.

Read a May 2023 report prepared by the KPMG member firm in Poland