The European Commission surprised many with its proposal on January 9 to extend the transitional SEPA period by six months. In the meantime, the proposal has been ratified by the Council of Ministers, so that the extension can be seen as verified. Officially, it will be announced in the official journal in February, and the regulation will still have to be translated into national law.
As a consequence, it will be possible until August 1, 2014, to submit payments using the legacy formats. Companies should, however, check with their banks as soon as possible whether they are willing or able to accept these formats. This is because banks are not obliged to still accept DTA formats, instead acceptance is subject to agreement. The European Commission wrote the following in its press release: “The introduction of a transitional period of six months, until 1 August 2014, means that the SEPA end-date remains the same but banks and payment institutions will be able to agree with their clients to process payments that differ from the SEPA standard until then.”
One payment method is definitely no longer available after February 1, according to a press release of the German SEPA Council: direct debits using debit order, which are used only rarely, will no longer available after the original SEPA deadline.
If you would like to know more, please talk to us about how these changes could affect you! We are happy to support you.