EU rules set to transform VAT fraud detection in e-commerce come into effect from 1 January 2024

From 1 January 2024, payment service providers (PSPs) offering payment services in the EU will be required to monitor the payees of cross-border payments. PSPs will be required to provide to the tax administrations in member states information of any business that receives more than 25 cross-border payments per quarter. 

The information provided will be stored in a centralised EU database, the central electronic system of payment information (CESOP), where it can be cross-checked against other European databases. The information in CESOP will be made available to anti-fraud experts in EU member states and Norway. 

The new rules and CESOP system should give tax authorities in member states the necessary tools to detect e-commerce VAT fraud carried out by sellers established in another EU member state or in a non-EU country, such as the UK. 

Payment service providers located in Northern Ireland are considered as established in a third country. This means that payment service providers in Northern Ireland are not subject to the reporting obligation. However, payments to payees located in Northern Ireland must be reported by the payer’s payment service provider, where that payment service provider is located in a member state.  

Like this article? Share on


Related articles

Information about our own complaints process, raising concerns to the Legal Ombudsman and to us

We want to give you the best possible service. However, if at any point you become unhappy or concerned about the service we provided then you should inform us immediately, so that we can do our best to resolve the problem.

In the first instance it may be helpful to contact the person who is working on your case to discuss your concerns and we will do our best to resolve any issues at this stage. If you would like to make a formal complaint, then you can read our full complaints procedure here. Making a complaint will not affect how we handle your case.

The Solicitors Regulation Authority can help you if you are concerned about our behaviour. This could be for things like dishonesty, taking or losing your money or treating you unfairly because of your age, a disability or other characteristic. 

You can raise your concerns with the Solicitors Regulation Authority.

What do to if we cannot resolve your complaint

The Legal Ombudsman can help you if we are unable to resolve your complaint ourselves. They will look at your complaint independently and it will not affect how we handle your case.

Before accepting a complaint for investigation, the Legal Ombudsman will check that you have tried to resolve your complaint with us first. If you have, then you must take your complaint to the Legal Ombudsman:

  • Within six months of receiving our final response to your complaint; and,
  • Within one year of the date of the act or omission about which you are concerned; or
  • Within one year of you realising that there was a concern.


If you would like more information about the Legal Ombudsman, you can contact them at the following details:

 Contact details

This website uses cookies to ensure you get the best experience on our website. By closing this message, you consent to our cookies on this device in accordance with our cookie policy unless you have disabled them.