(This note is not part of the Instrument and does not purport to be a legal interpretation.)

These Regulations transpose into Irish VAT law Council Directive (EU) 2020/284, which amends Council Directive 2006/112/EC on the common system of value-added tax.

With the growth in electronic commerce transactions, the collection and use of data on cross-border payments can be especially useful in the effort to combat VAT fraud across the EU. In this context, Council Directive (EU) 2020/284 introduced new record-keeping and reporting obligations for payment service providers who are established in the EU. The new obligations are part of the arrangements that relate to CESOP: a central electronic system of payment information developed by the EU Commission to collect certain details on cross-border payments as a way of supporting tax authorities in detecting VAT fraud and in investigating suspected such cases.

This set of Regulations transposes Council Directive (EU) 2020/284 into Irish law by way of inserting new provisions – Part 9A – into the Value-Added Tax Consolidation Act 2010 (No. 31 of 2010). Under the new provisions, payment service providers who offer payment services within the EU will have record- keeping and reporting obligations in respect of certain cross-border payments. The obligations arise where they provide payment services in respect of more than 25 cross-border payments to the same payee during a calendar quarter.

Regulation 1 gives the title of the Regulations.

Regulation 2 provides that the Regulations will come into effect on 1 January 2024.