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The European Councilreached an agreementon a set ofrules to facilitate detection of VAT tax fraud in cross-border e-commerce transactions. The new rules bring harmonization to the way member states collect the records from payment service providers, such as banks. A new central electronic system will be set up for the storage and processing of payment information by national anti-fraud officials. These rules complement the VAT regulatory framework for e-commerce, coming into force in January 2021, which introduced new VAT obligations for online marketplaces and simplified VAT compliance rules for online businesses.
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