Germany: Guidance on obligations of payment service providers, other VAT developments

Guidance regarding obligations of payment service providers within framework of new centralized European system

Guidance on obligations of payment service providers, other VAT developments

The Federal Ministry of Finance (BMF) on 28 December 2023 published guidance (III C 5 - S 7420/20/10007:004) regarding the obligations of payment service providers under § 22g UStG within the framework of the new centralized European system for collecting and exchanging payment information—the Central Electronic System of Payment Information (CESOP) aimed at detecting and combatting value added tax (VAT) fraud in cross-border internet sales of goods and services.

The BMF guidance contains more detailed information on:

  • Material and personal scope of application
  • Procedure for transmitting records
  • Sanctions

Read a January 2024 report [PDF 585 KB] prepared by the KPMG member firm in Germany

Other recent VAT developments that may affect businesses in Germany include the following items:

  • CJEU: Activity of a member of the board of directors of a public limited company (read TaxNewsFlash)
  • Lower Tax Court Cologne: § 14c UStG and Union Law
  • Lower Tax Court Berlin-Brandenburg: Copyright warnings


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