Financial Crime World

Belgium Introduces Stricter Rules for Detecting Fraudulent Transactions

In an effort to combat VAT fraud in cross-border e-commerce, Belgium has adopted new laws requiring payment service providers to keep detailed records of transactions and report them to tax authorities.

New Regulations Aim to Combat VAT Fraud

As of January 1, 2024, payment service providers in Belgium will be required to:

  • Keep records of cross-border payments exceeding 25 transactions per payee during a calendar quarter
  • Include the following information in each record:
    • Name or business name of the payee
    • VAT identification number or national tax number (if available)
    • Details of each transaction

Reporting Requirements for Payment Service Providers

The reporting requirement applies to payment service providers with a head office or branch in Belgium, including:

  • Banks
  • E-money issuers
  • Payment institutions

All types of payment transactions are in scope, including:

  • Credit transfers
  • Direct debits
  • Standing orders
  • Card payments
  • Money remittance transactions

Payment service providers must submit XML files containing the payment information to the Belgian tax authorities via the MyMinfin portal by the end of each reporting period (calendar quarter). The first reporting is due by April 30, 2024.

Storage and Analysis of Payment Information

Upon receipt of the information, the tax authorities will transmit it to the European database “CESOP”, where it will be stored, aggregated, and analyzed for potential VAT fraud.

Record-Keeping Obligations

Payment service providers must keep records of in-scope cross-border payments for a period of three calendar years as of the end of the calendar year of the payment date. Failure to comply with these reporting obligations may result in administrative fines.

Seeking Assistance or Guidance

As the new rules take effect, payment service providers should ensure they are prepared and able to fulfill these requirements. Any assistance or guidance needed on the matter can be sought from:

  • Alain Huyghe
  • Julie Permeke
  • Olivier Van den Broeke
  • Olivier Van Baelen