40xxx · Reported payee
CESOP error 40010
“The reported transaction does not represent cross-border payment”
Caught before you file
What it means
The payment is not cross-border: the payer and the payee are in the same Member State. CESOP collects cross-border payments only, and a domestic one is rejected.
Why files get it
- Domestic payments not filtered out of the export.
- The payee's country taken from the PSP's own location rather than the payee's.
How to fix it
- Exclude payments where the payer's Member State and the payee's location are the same.
- Check how the payee's country is derived — from the IBAN, the BIC of the payee's PSP, or other information you hold.
Check a file for 40010 before you submit
The free validator runs the CESOP business rules against your file and names the error each finding would become — 40010 included — so the Validation Result is not where you first hear about it.
The file is parsed in your browser tab. No upload, no account.
Source: the error catalogue in the Payment Data XSD User Guide — CESOP, v4.40 (DG TAXUD), §2.2.3.18. The explanation is ours; it describes the file format and is not tax advice.