Under the CESOP Directive, eBay is required to send quarterly reports to the relevant EU tax authorities if an eBay seller has received more than 25 cross-border payments in a quarter. Cross-border payments refer to payments where the buyer is located in the EU, and the seller is located either in a different country within the EU or outside the EU.
The relevant tax authorities will forward the reports to the centralized CESOP database, where the data will be available for further analysis.
Your tax obligations will not be affected by CESOP reporting obligations. If you need more details on your tax obligations, or have specific questions related to your own selling activity on eBay, you should speak with your tax or legal advisor.
Tip
There are no minimum monetary thresholds for CESOP. We’re simply counting the number of cross-border payment transactions a seller has received.
Frequently Asked Questions
When does eBay have to report seller data for CESOP?
If a seller received more than 25 cross-border payments in a calendar quarter from EU buyers for items listed on the European eBay sites, these transactions become part of eBay’s report. For example, if a seller in France receives 26 payments from buyers in Italy in a quarter, these transactions would need to be reported. For the same seller, payments received from buyers in France would not need to be reported.
Where and how does eBay send the CESOP data?
eBay S.à r.l., the eBay payment entity processing payments in the EU, will send the legally required information to the EU country where the recipient seller is based. The data is sent electronically via each country’s specific CESOP reporting portals.
Once the CESOP threshold is reached, what data is eBay reporting?
Once the CESOP threshold is reached, eBay reports all the legally required data for that seller. This includes the seller’s name, address, and details of the cross-border transactions or related refunds, including the date, amount, currency, order ID, and the on-file IBAN for payouts, if available.
For CESOP, eBay doesn’t report any data on domestic transactions, which are transactions where the buyer location and the seller location are the same. If a seller received 26 cross-border payments and 100 domestic payments in a quarter, the 100 domestic payments are not part of the report.
Will eBay disclose any buyer details for CESOP?
eBay will only disclose the country where the buyer’s payment originated from, using certain location identifiers available.
I sell from various different eBay accounts. How will this affect what is reported for CESOP?
If we know that different eBay accounts belong to the same seller, we’re required to treat all payments across the various eBay accounts as made to that seller. Sellers with multiple linked eBay accounts will have the total number of their cross-border payments added up for CESOP reporting. For example, if a seller has two accounts and receives 15 cross-border payments in one account and 15 cross-border payments in another account in a quarter, this seller will have reached the threshold for CESOP reporting.
CESOP and your tax obligations
CESOP doesn’t change your tax obligations, it only means that eBay is obliged to report your data once the threshold has been reached. The introduction of CESOP doesn’t change the fact that you remain responsible for clarifying whether your eBay sales are subject to tax, and, if applicable, complying with all relevant reporting obligations that may arise from your activities on eBay. We recommend that you consult a tax advisor if you have any questions about your tax obligations. You can also speak with your tax advisor or local tax authority for CESOP details relating to your country.
Helpful links
For more information or details about CESOP, see: