Payment Firms Face New Obligations As Anti-Fraud Law Passes Final Hurdle

A law passed on Tuesday by the European Parliament will see payment firms in member states subject to a bevy of new requirements as they are recruited into the fight against e-commerce VAT fraud.

The measures, which take the form of an amendment to the VAT Directive, have been imposed in the teeth of vociferous opposition from industry groups. 

The rules require payment service providers (PSPs) to gather and hold a range of data to help authorities better identify the origin and destination of cross-border e-commerce payments to ensure the correct amount of VAT is paid.

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