Starting this year, Estonia introduces significant amendments to tax laws, requiring payment service providers to comply with additional record-keeping and reporting obligations for specific cross-border transactions, with data submissions beginning at the end of each quarter and aimed at combating fraud in cross-border e-commerce.
Commencing January 1, 2024, substantial modifications to the Value Added Tax Act and the Taxation Act will take effect in Estonia, placing additional record-keeping and reporting responsibilities on payment service providers.
Payment service providers must now preserve and transmit data to tax authorities for payments meeting the following criteria:
- Provision of payment services to the same payee within a quarter.
- Exceedance of 25 payments to a single payee within a quarter.
- The payer is located in one EU member state, while the payee is situated in another member state or a non-EU country.
Commencing the end of the month following the quarter, payment service providers will initiate the submission of required information in XML format. Therefore, the inaugural report must be filed via the tax authority’s e-service platform by April 30, 2024.
The accumulated payment data will be shared among EU tax authorities through the Centralized Electronic System for Payment Information (CESOP). This innovative information exchange is designed to combat fraud in cross-border e-commerce.
These adjustments are pivotal for compliance, and we encourage you to acquaint yourselves with the updated regulations to ensure smooth adherence to the new requirements.
Additional information can be found on the Tax Office website.
Can we be of any help?
If you need any help with accounting tasks for your Estonian payment service provider, or you’re looking for other legal services, feel free to get in touch with our staff.
