[ad_1]
Blockchain, the revolutionary technology that has gained increasing popularity in recent years, can be of great help in the implementation and management of VAT, according to an expert. While VAT should increase revenue for the government, tax collection challenges include issues related to companies that might try to avoid taxes. Both problems can be addressed with the use of VAT, says a leading IT expert.
According to Yaqoob AlAwadhi, CEO of NGN International, blockchain can help facilitate tax collection at no additional cost to intermediaries. He said that blockchain can cut VAT administration costs by eliminating the need for third-party intermediaries: agents, trust account, trusted banks and many others that he believes "slows down the entire transaction process". "Blockchain is a safe and effective tool for managing the value added tax, which would help reduce the cost of tax management and accelerate the collection of 80%," he said.
He urged the government to be a pioneer in the GCC in using "Blockchain" in the collection of value added tax ", since this technology eliminates the role of intermediaries such as accounting firms or banks between the merchant and the government. " "Blockchain accelerates government access to tax revenues from the final consumer of the service or item, and it also accelerates the reimbursement process of the trader and the tax supplier".
"There are estimates that the value added tax will increase the state budget of 300 million Bahrain dinars in the year, will contribute to 1.6% of GDP, but nobody wants the cost of collecting of this tax is greater than his income through the need for a huge staff, consultancy fees, or many deliberate or unintended evasion, "added Al-Awadhi. Blockchain, said Al-Awadhi, has seen a rapid rise in popularity from being used in the cryptocurrency space. "Now this technology has evolved dramatically and is now used in many areas, such as network administration, copyright and ownership, digital identity, energy, electronic voting, and private and public sector management."
Read more
VAT is the Silver Lining of the GCC countries in this difficult phase
More than 296,000 companies registered for VAT in the United Arab Emirates
"We believe that blockchain is a great help for the tax system," he said. According to him, the key strength of Blockchain is its safe and transparent nature. "Anyone interested can see a chain of blocks with transaction details but can not change, add or remove any blocks." "Unlike electronic tax invoices, which are placed in a database and can be exposed to third-party interference, blockchain is exempt from these vulnerabilities.
"The system is able to track VAT-related financial flows and monitor the fulfillment of taxpayers' obligations in real time, without the possibility for fraudsters to hide any transaction or obtain a refund or compensation of VAT. 39; illegal VAT, "he said. The blockchain was adopted for the collection of VAT in Kazakhstan, where the government decided to move the system of taxation on the blockchain by 2020 in order to combat various tax evasion schemes.
[ad_2]Source link
