- The OECD says AI is rapidly improving VAT administration, cutting some authorities’ non-compliance detection and investigation time from about nine months to three.
- AI is already being used in tax audits in the UK and elsewhere to make audits more accurate and efficient.
- VAT is a strong fit for AI because tax authorities now have huge amounts of structured data from returns, e-invoices, customs, payments, and marketplace reports.
- AI helps spot fraud and risk patterns, such as suspicious refund claims and missing trader fraud, while reducing false positives and prioritizing high-risk cases.
- E-invoicing and real-time reporting may deliver the biggest long-term gain by giving tax authorities supply-chain-wide data that AI can analyze, especially as reforms like EU ViDA expand digital VAT reporting.
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
