The Danish parliament is considering draft bill L 75, which provides for the implementation of new reporting obligations for payment service providers from 1 January 2024 as introduced by Council Directive (EU) 2020/284 of 18 February 2020 amending Directive 2006/112/EC as regards introducing certain requirements for payment service providers. As per Council Directive (EU) 2020/284, payment service providers offering payment services in the EU are required to monitor the payees of cross-border payments and transmit information on those who receive more than 25 cross-border payments per quarter to the administrations of the Member States. The requirements are intended to help in the fight against VAT fraud.

In addition to the reporting requirements for payment service providers, the draft bill also provides for the introduction of a reverse charge obligation for the payment of VAT on telecommunications services to minimize the risk of VAT carousel fraud. New information reporting obligations are also proposed that would require all VAT-registered businesses to provide information annually in connection with activities that allow for partial VAT deductions. As proposed, the measures of the draft bill would enter into force on 30 June 2023, with certain exceptions, such as the reporting obligations for payment service providers.