--- title: A Comprehensive Guide to Central Electronic System on Payment Information description: "Starting January 1st, 2024, payment processors in Europe took on a new responsibility: reporting specific details about certain digital asset cross-border payments. This information goes to tax authorities, who then send it to the European Commission for storage in a central database called the Central Electronic System on Payment Information (CESOP)." image: https://blog.cryptio.co/hubfs/Cryptio%20x%20CESOP%20(1).jpg --- [![Cryptio logo](https://blog.cryptio.co/hubfs/raw_assets/public/Cryptio_October2021/images/logo-black.svg "Cryptio logo")](https://cryptio.co/) - Solutions ![accounting-firms-green-bordered.b2040145-3](https://blog.cryptio.co/hubfs/accounting-firms-green-bordered.b2040145-3.svg) ##### [Accounting and Tax](https://cryptio.co/solutions/accounting-tax) [Automate GAAP & IFRS compliant reporting](https://cryptio.co/solutions/accounting-tax) ![internal-controls-green-bordered.eaefa46d-1](https://blog.cryptio.co/hubfs/internal-controls-green-bordered.eaefa46d-1.svg) ##### [Internal controls](https://cryptio.co/solutions/internal-controls) [Ensure completeness and accuracy of crypto data to an auditable standard](https://cryptio.co/solutions/internal-controls) ![Nav bar icons_Blockchain Foundations](https://blog.cryptio.co/hubfs/Nav%20bar%20icons_Blockchain%20Foundations.svg) ##### [Reconciliation](https://cryptio.co/solutions/reconciliation) [Reconcile crypto balances and transactions with internal systems](https://cryptio.co/solutions/reconciliation) [![build-vs-buy-guide.64b11d10-1](https://blog.cryptio.co/hubfs/build-vs-buy-guide.64b11d10-1.svg)](https://landing.cryptio.co/build_vs_buy) ##### [Build your back-office](https://landing.cryptio.co/build_vs_buy) Learn why leading enterprises choose to buy rather than build their own back-office solutions [Download guide](https://landing.cryptio.co/build_vs_buy) - 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**![public-sectors-green-bordered.b77716e2](https://blog.cryptio.co/hubfs/public-sectors-green-bordered.b77716e2.svg)** ###### Public Sectors Verify financial statements and tax filing accuracy for digital asset - **![Nav bar icons_Blockchain Foundations](https://blog.cryptio.co/hubfs/Nav%20bar%20icons_Blockchain%20Foundations.svg)** ###### Blockchain Foundations Help your ecosystem meet its accounting and reporting requirements - **![accounting-firms-green-bordered.b2040145-2](https://blog.cryptio.co/hubfs/accounting-firms-green-bordered.b2040145-2.svg)** ###### Accounting Firms Join 50+ world-class accounting, audit, tax, and advisory firms - [Partners](https://cryptio.co/partners) - Learn ##### [Blog](https://blog.cryptio.co/) [Company news, product updates, guides, and industry insights](https://blog.cryptio.co/) ##### [Courses](https://cryptio.co/learn) [Everything you've ever wanted to know about crypto accounting](https://cryptio.co/learn) [![stablecoin-reporting-nav.d2d366b0](https://blog.cryptio.co/hubfs/stablecoin-reporting-nav.d2d366b0.svg)](https://landing.cryptio.co/stablecoin-accounting-guide) ##### [Stablecoin Reporting](https://landing.cryptio.co/stablecoin-accounting-guide) Best practices for stablecoin accounting & reporting [Download guide](https://landing.cryptio.co/stablecoin-accounting-guide) [![fair-market-value-accounting-nav.2bb55e56](https://blog.cryptio.co/hubfs/fair-market-value-accounting-nav.2bb55e56.svg)](https://landing.cryptio.co/fmv-accounting-guide) ##### [Fair Market Value Accounting](https://landing.cryptio.co/fmv-accounting-guide) Transition to the newFASB FMV rules [Download guide](https://landing.cryptio.co/fmv-accounting-guide) [![month-end-reconciliation-nav.9eb360bc](https://blog.cryptio.co/hubfs/month-end-reconciliation-nav.9eb360bc.svg)](https://landing.cryptio.co/guides/end-of-month-reconciliation) ##### [Month-end reconciliation](https://landing.cryptio.co/guides/end-of-month-reconciliation) Best practices for your month-end processes [Download guide](https://landing.cryptio.co/guides/end-of-month-reconciliation) [![how-to-get-audit-ready-nav.a0fbb70b](https://blog.cryptio.co/hubfs/how-to-get-audit-ready-nav.a0fbb70b.svg)](https://landing.cryptio.co/guides/how-to-get-audit-ready) ##### [Get audit-ready](https://landing.cryptio.co/guides/how-to-get-audit-ready) Completeness & accuracyfor on-chain businesses. [Download guide](https://landing.cryptio.co/guides/how-to-get-audit-ready) [![build-your-back-office-nav.7bffac50](https://blog.cryptio.co/hubfs/build-your-back-office-nav.7bffac50.svg)](https://landing.cryptio.co/guides/back-office-playbook) ##### [Build your back-office](https://landing.cryptio.co/guides/back-office-playbook) Accounting & reportingfor crypto-native businesses [Download guide](https://landing.cryptio.co/guides/back-office-playbook) - [Pricing](https://cryptio.co/pricing) - [Careers](https://cryptio.co/careers) [![Sign in](https://no-cache.hubspot.com/cta/default/20275766/989fa2da-65dc-4b42-96c1-3d9abcc57425.png)](https://cta-redirect.hubspot.com/cta/redirect/20275766/989fa2da-65dc-4b42-96c1-3d9abcc57425) [![Book a demo](https://no-cache.hubspot.com/cta/default/20275766/7f093aaf-1bd4-4545-97c6-c5ac040f256c.png)](https://cta-redirect.hubspot.com/cta/redirect/20275766/7f093aaf-1bd4-4545-97c6-c5ac040f256c) - ![LinkedIn](https://blog.cryptio.co/hubfs/LinkedIn.svg) - ![Twitter](https://blog.cryptio.co/hubfs/Twitter.svg) ![](https://blog.cryptio.co/hubfs/Cryptio%20x%20CESOP%20(1).jpg) **[Jeff Rundlet](https://blog.cryptio.co/author/jeff-rundlet) |** February 6, 2024 - [Insider](https://blog.cryptio.co/tag/insider) ## A Comprehensive Guide to Central Electronic System on Payment Information ## A Comprehensive Guide to Central Electronic System on Payment Information **Starting January 1st, 2024, payment processors in Europe took on a new responsibility: reporting specific details about certain digital asset cross-border payments.** This information goes to tax authorities, who then send it to the European Commission for storage in a central database called the [**Central Electronic System on Payment Information (CESOP)**](https://taxation-customs.ec.europa.eu/taxation-1/central-electronic-system-payment-information-cesop_en). ### **Why create CESOP?** Two main goals: **Curb VAT fraud:** By tracking cross-border transactions, authorities can better identify potential offenders and crack down on VAT evasion. **Level the playing field:** Increased transparency ensures fair competition between businesses by making it harder for some to hide income and gain an unfair advantage. ### Payment Service Providers (PSP) means: - Credit institutions, a category that includes, for example, fully authorized banks that are established in Europe, as well as European branches of credit institutions that have their headquarters outside the EU and that provide payment services. - Electronic money issuing institutions, a category that includes all payment service providers that provide payment services in electronic money, for example, issuers of electronic wallets and issuers of value coupons (vouchers)/electronic cards. - Payment institutions, a residual category that can include all companies that provide payment services and that do not meet the criteria for inclusion in any of the other categories listed above. This category may include businesses that provide payment services, such as issuing credit/debit cards, accepting payment transactions, processing payments, initiating payments or platforms, that provide payment services and act both on behalf of the payer and the account of the payee, etc. - Postal transfer institutions that provide payment services. ### Targeted payment services Only payment service providers that provide the following payment services are subject to the reporting obligation: - Execution of payment operations and fund transfers in payment accounts; - Execution of payment operations covered by a credit line; - Issuing payment instruments and accepting payment operations; - Postal transfer institutions that provide payment services. Therefore, payment service providers that provide services related to the operation of a payment account, crypto deposit and withdrawal services, payment initiation services and account information services are not subject to the reporting obligation. The reason for this exclusion is that the respective types of services either do not refer to the execution of payment operations, or would provide information that is already provided by other payment service providers involved in payment operations. ### Monitoring and triggering the reporting obligation Three requirements must be met to trigger the reporting obligation of a payment service provider (the reporting entity): - The reporting entity must be a payment service provider as defined in Article 243a points 1, 2 & 3 of Directive 2006/112/EC; - The reporting entity must provide payment services as defined in Article 243a point 2 of Directive 2006/112/EC; between a payer and a payee, where the payer is located in a Member State, and the beneficiary of the payment is in another member state, on a third territory or in a third country. When the above conditions are met, the payment falls within the scope of the reporting obligation. However, it is not reported unless two additional conditions are met, which are established based on a monitoring test carried out by payment service providers. These two additional conditions are as follows: - The reported payment must be a cross-border payment and - The payment service provider providing payment services in a Member State **must execute in that Member State at least 25 cross-border payments per quarter** to a single payee to trigger the reporting obligation. ### Submission deadlines As the data declaration will be **carried out quarterly**, the first transmission will be made in April 2024. Reporting deadlines for payment service providers: - April 30 Period 1 (January-March) - 31 July 2nd Period (April-June) - October 31 Period 3 (July-September) - 31 January 4th Period (October-December) ### Cryptio is here to help - **Automated data collection and aggregation:** The solution automatically integrates with various PSPs and platforms, collecting and consolidating payment data. - **Data validation and enrichment:** The solution validates data accuracy and completeness, potentially enriching it with additional information for better analysis. - **Increased efficiency:** streamline the overall compliance process, freeing up internal resources for other tasks. [Book a demo](https://cryptio.co/demo) with our team today.  #### Table of contents - [Why create CESOP? Two main goals:](https://blog.cryptio.co/a-comprehensive-guide-to-central-electronic-system-on-payment-information#anchor-1) - [Payment Service Providers (PSP) means:](https://blog.cryptio.co/a-comprehensive-guide-to-central-electronic-system-on-payment-information#anchor-2) - [Targeted payment services](https://blog.cryptio.co/a-comprehensive-guide-to-central-electronic-system-on-payment-information#anchor-3) - [Monitoring and triggering the reporting obligation](https://blog.cryptio.co/a-comprehensive-guide-to-central-electronic-system-on-payment-information#anchor-4) - [Submission deadlines](https://blog.cryptio.co/a-comprehensive-guide-to-central-electronic-system-on-payment-information#anchor-5) - [Cryptio is here to help](https://blog.cryptio.co/a-comprehensive-guide-to-central-electronic-system-on-payment-information#anchor-6) ### Start using Cryptio for free [![Book a demo](https://no-cache.hubspot.com/cta/default/20275766/7f093aaf-1bd4-4545-97c6-c5ac040f256c.png)](https://cta-redirect.hubspot.com/cta/redirect/20275766/7f093aaf-1bd4-4545-97c6-c5ac040f256c) [Back to blog](https://blog.cryptio.co) ### Discover more from Cryptio - [Crypto Finance Forum](https://blog.cryptio.co/tag/crypto-finance-forum) ### [How tokenization and TradFi-crypto convergence are rebuilding financial infrastructure](https://blog.cryptio.co/how-tokenization-and-tradfi-crypto-convergence-are-rebuilding-financial-infrastructure) 5 minute read - [Insider](https://blog.cryptio.co/tag/insider) ### [Outlook for digital asset funds in 2024 with Bitwise, CoinShares, ETC Group and Hashdex](https://blog.cryptio.co/outlook-for-digital-asset-funds-in-2024-with-bitwise-coinshares-etc-group-and-hashdex) 7 minute read - [Insider](https://blog.cryptio.co/tag/insider) ### [The future of payments with Worldpay, Circle, Ripple and Stellar Development Foundation](https://blog.cryptio.co/the-future-of-payments-with-worldpay-circle-ripple-and-stellar-development-foundation) 8 minute read ## Book a meeting with *our experts* On the call we can set you up with a sandbox account so you can try Cryptio for yourself. ![Letter icon](https://blog.cryptio.co/hubfs/raw_assets/public/Cryptio_October2021/images/letter.svg) - Enterprise-grade security - Online support - Instant access ![Letter icon](https://blog.cryptio.co/hubfs/raw_assets/public/Cryptio_October2021/images/loop.png) ![Letter icon](https://blog.cryptio.co/hubfs/raw_assets/public/Cryptio_October2021/images/ethereum_bitcoin_coin.png) ![Cryptio logo](https://blog.cryptio.co/hubfs/raw_assets/public/Cryptio_October2021/images/logo-white.svg "Cryptio logo") [![LinkedIn](https://blog.cryptio.co/hubfs/LinkedIn.svg)](https://www.linkedin.com/company/cryptio) [![Twitter](https://blog.cryptio.co/hubfs/Twitter.svg)](https://twitter.com/cryptio_co) ![soc-logo](https://blog.cryptio.co/hs-fs/hubfs/Imported%20images/soc-logo.png?width=38&name=soc-logo.png "soc-logo") ### Product - [Use cases](https://cryptio.co) - [Solutions](https://cryptio.co) - [Pricing](https://cryptio.co/pricing) - [Integrations](https://cryptio.co/integrations) ### Support - [Contact us](https://cryptio.co/contact) - [Help center](https://support.cryptio.co/hc/en-gb) ### Company - [Partners](https://cryptio.co/partners) - [Blog](https://blog.cryptio.co/) ### Legal - [Terms & Conditions](https://cryptio.co/terms) - [Privacy policy](https://cryptio.co/privacy) ### Don’t miss an update Sign up for our newsletter for the latest Cryptio news & insights All Rights Reserved - Inquiries: [security@cryptio.co](mailto:security@cryptio.co)