The Impacts of Tax Administration Digitalization to GST Registrants

It is the trend of global tax authorities are going to digitalize now. Tax authoritities are facing increasing pressure to streamline operation processes and increase tax revenue. Digitalization is one of the most efficient ways to achieve the objectives. Many tax authorities from the Government will preparer digitalization from either GST or VAT mechanism as this tax administration requires more frequent filing than other types of tax mechanism.

In addition, digitalization will also bring in the benefits of big data analytics for the tax authorities to understand the long term trends and patterns of their taxpayers. These big data analytics can use to justify the reasonableness of GST return and also become GST audit selection criteria.

This article adopts a figure from the leading tax advisory firm and modify to fit the objective of this article. There are six levels of digitalization which comprise of the following:

Digitalization