|
Background
As from 1st January 2024, the provisions
of the Value Added Tax (Reporting Obligations For Payment Service Providers)
Regulations [Subsidiary
Legislation 406.22] transposing Council
Directive (EU) 2020/284, which amends the EU
VAT Directive (CD 2006/112/EC), will come into effect. These new
Regulations introduce certain new reporting requirements for Payment Service
Providers* mainly concerning cross-border payments originating from EU Member
States. This new requirement is increasingly relevant in view of the growth
of electronic commerce which facilitates cross-border sales of goods and
services to final consumers in an EU Member State (where the VAT may be due)
in which the supplier is not established (thus not necessarily registered for
VAT purposes).
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 is detrimental to the 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 by evading their VAT obligations.
Stakeholders or other interested parties may seek further
information as regards the new requirements coming into play in 2024 on the
EU Commission’s website as follows:
CESOP
– EU Commission Website
It is also opportune to note that the EU Commission has
published updated reporting guidelines, a list of Frequently Asked Questions
(FAQs), as well as an updated technical XSD user guide, available on the
abovementioned link (at the bottom of the webpage).
In case of any queries as regards CESOP, you are kindly
requested to contact the Malta Tax and Customs Administration on [email protected].
Registration for CESOP
|
In terms of
Subsidiary Legislation 406.22, a payment service provider whose home Member
State or host Member State is Malta shall apply to be registered as a PSP by
not later than 25 January 2024 or the date Malta becomes its home Member State
or host Member State as may be applicable, whichever is the later.
Notwithstanding the
above, the Commissioner hereby notifies payment service providers of a one-time
concession whereby the registration deadline of 25th January 2024 is
extended to 16th February 2024.
Registration of a PSP for CESOP purposes by a user (either a Director or a Tax Practitioner duly registered with the MTCA (via CFR01 form)) having a Maltese e-ID may login here:
Registration
possibility for users having an EU e-ID (EIDAS) or non-EU users will be made
available in due course. In the meantime, representatives of PSP or tax
practitioners who do not have a Maltese ID are required to submit the following
forms in order to facilitate registration for CESOP when made available
for non-Maltese ID holders:
- VAT
Online Form 1
– to be used by the Directors of PSPs not in possession of a Maltese ID to
authorise any of the PSP’s employees to be able to register for and use
CESOP e-services in Malta.
- VAT
Online Form 3
– to be used by a Tax Practitioner, and its Users, not in possession of a
Maltese ID to be able to register for and use CESOP e-services in Malta.
Directors of PSPs/tax practitioners in
possession of a Maltese ID will not be required to use the above forms in order
to be able to register for and access CESOP e-services on behalf of a PSP.
Disclaimer:
The
electronic submission of any forms/notifications on behalf of a PSP by a user
does not create any liability, in terms of the Malta VAT Act, for the person
who makes the electronic submission. The responsibility for the contents of any
submission remains that of the PSP and any representative thereof in terms of
article 66 of the VAT Added Tax Act.
*As per
the definition outlined in Regulation 2(1) of Subsidiary Legislation 406.22, a
“payment service provider” falling within the scope of CESOP includes mainly
credit institutions, e-money institutions, payment institutions and
post-office giro institutions.