As of 1 January 2024, payment service providers have to report information on certain cross-border payments.

This information should be reported to the Danish Tax Agency (Skattestyrelsen), which forwards it to the central EU system Central Electronic System of Payment Information (CESOP). The purpose of this new EU system is to uncover cross-border VAT fraud in E-commerce.

Generally, there are two types of cross-border payments that payment service providers have to report to CESOP:

  • Payments from EU countries to private individuals or businesses (payees) in Denmark.
  • Payments from Denmark to private individuals or businesses (payees) in countries outside the EU.

But such payments should only be reported in case of more than 25 payments each quarter to the same payee. If none of the payment service provider's payees receives more than 25 cross-border payments, we recommend that the payment service provider submits a 'no payment data to report' file.

The information should be reported the month after the end of the quarter, and the first reporting deadline is April 2024.

Read more about how your report your information under ‘Good to know about reporting of payment information’.

The new rules on reporting of cross-border payments were passed in the EU and  from 13 June 2023 they are part of the Danish VAT legislation. Read more about the Danish VAT Act and the EU directive and regulations in the following links:

  • Danish Amended VAT Act - Act no. 755 of 13 June 2023.
  • The EU Directive is an amendment of a former EU Directive (pdf). The directive is a binding EU legislation act that all member states have to implement within the deadline, in this case 2024. The Danish legislation process for the directive on cross-border payments is expected to go on until early 2023.
  • The EU Regulation is an amendment of a former EU Regulation (pdf). An EU regulation is universally valid which means that it applies to all individuals, businesses and authorities in the EU.

The reporting should be done each quarter, starting in 2024. But such payments should only be reported in case of more than 25 each quarter to the same payee.

If none of the payees (of a payment service provider) subject to reporting receives more than 25 cross-border payments within a quarter, the payment service provider should submit a no payment data report file.

The reporting can be made via our self-service system E-tax for businesses (TastSelv Erhverv) or as a mass reporting via system to system solutions.

Please note that before a payment service provider who is subject to the reporting duty can report payment information to the Tax Agency, the provider has to be registered for the duty with the Danish Business Authority (Erhvervsstyrelsen).

Reporting guidelines

You will find the reporting guidelines in all languages at the EU site on CESOP.

At this site, you also find the XSD User Guide that specifies which payment information you should report.

Guide for non-Danish PSPs (Payment Service Providers) who meet the 3 requirements below:

  • You offer cross-border payment services to customers living in Denmark.
  • You are subject to the CESOP rules and have to report certain information to the Danish Customs and Tax Administration (Skatteforvaltningen).
  • You are not registered with the Danish Business Authority (Erhvervsstyrelsen) (you have no SE/VAT no./business number issued by the Danish authorities). Please note that registering with the Danish Business Authority is not the same as the EU rules on free movement of capital.

To report cross-border payment information to the Danish Customs and Tax Administration and to meet possible security issues, relevant businesses need to register with a so-called administrative SE no. and to be informed that they have to report certain cross-border payment information to Denmark.

You complete form 40.112 to register with an administrative SE no. Find the form and read more at the Business Authority’s website. Once you have completed form 40.112, you send it to: virksomhed@erst.dk.

Please make sure to write CESOP in section 14.

 

When the Business Authority has received your request for an administrative SE no. and information that you need to report certain cross-border payment information to Denmark, the request will be forwarded to the Danish tax authorities.

Next, you will receive a registration certificate stating that the business is now registered in Denmark in order to report certain cross-border payment information to the Danish Customs and Tax Administration.

A few days later, you will receive an E-tax password to log on to the Danish self-service reporting system, E-tax.

This is how you log on:

The Tax Agency is cooperating with the industry on a timetable and technical guidelines for the reporting process.

The industry associations are heard on an ongoing basis, in the development phase for example, when they present their needs and requests for user-friendly solutions.

In April 2024, payment service providers will have to do their first reporting on cross-border payments to the Tax Agency. 

  • 2022

    • The Danish legislative process was initiated and skat.dk/cesop was published.

  • 2023

    • The amended Danish VAT Act was passed and published by Act no. 755 of 13 June 2023.
    • The Danish-language guidance is expected to be ready in mid-2023.
    • In the summer of 2023, the test phase begins allowing invited payment service providers to test the system.

  • 2024

    • In the first quarter of 2024, payment service providers have to check if they have payees who receive more than 25 payments and thereby are subject to reporting to the Danish Customs and Tax Administration.
    • The first reporting is scheduled for April 2024.
    • After April 2024, payment service providers subject to reporting will have to do so to CESOP each quarter.

Throughout the process, users can access a support function. Contact us by email at CESOPDK@sktst.dk

The EU has passed both a new directive and new regulations meaning payment service providers will have to report cross-border payments as of 2024.

See the below relevant links:

See the timetable for more information on important milestones.

 You can write to the Tax Agency’s CESOP postbox: cesopdk@sktst.dk 

Published on 7 October 2022.

 CESOP means Central Electronic System of Payment Information. 

Published on 3 October 2022.

The information is transmitted to a central EU database for analytical purposes, among others.

Published on 3 October 2022.

The reported payment information should be used to uncover and control fraudulent businesses. 

Published on 3 October 2022.

We expect to begin testing the system in the summer of 2023.

Published on 3 October 2022.

You can’t access the system until early 2024. 

You have to be registered for the duty with the Danish Business Authority (Erhversstyrelsen) before you can report the payment information to the Tax Agency. You will  find links to register there and at virk.dk.

Published on 3 October 2022.

 There are two types of payment information to report. These are: 

  • Payments from EU countries to private individuals or businesses (payees) in Denmark. 
  • Payments from Denmark to private individuals or businesses (payees) in countries outside the EU. 

Read more under ‘Types of payments’

Published on 3 October 2022.

You will be able to report your information via E-tax for businesses (our self-service system, TastSelv) in the same way as you file your VAT return or report payroll tax. 

Read more under ‘Good to know about reporting of payment information’.

Published on 3 October 2022.

You have to report the payment information when there are 25 or more cross-border payments per quarter to the same payee in either Denmark or countries outside the EU. Please note that if payments have been made to payees in other EU countries, such payments will be reported by the relevant EU country.

Published on 3 October 2022.

30 April 2024 is the final reporting deadline for the first reporting. 

Published on 3 October 2022.