Blockchain technology will have a larger impact on various tax topics in the future, including combating VAT fraud. It offers development opportunities and could reduce administrative effort for e-invoicing. The EU’s “European Blockchain Service Infrastructure” should be integrated into national solutions. The Federal Audit Office recognized the potential of blockchain in fighting VAT fraud in Germany. Implementing blockchain solutions could standardize tax processes and reduce compliance requirements for the private sector. It also offers advantages for cross-border transactions. The technology aims to ensure transparent and tamper-proof exchange of tax information, increasing productivity and simplifying control processes for tax authorities. There are two developing trends: representing invoice information using blockchain and collecting VAT as part of the electronic payment process. There is potential to replace VAT with a cryptocurrency designed for this purpose, which could significantly combat fraud at the B2B level. The EU should encourage member states to adopt new technological trends.
Source VER – Germany
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