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The payment of value added tax (VAT) is one of the main ways by which the government of any country is able to meet its needs. The government of Thailand, just like most governments around the world, is facing some serious problems when the payment of value added tax is being monitored. The weakness of the way in which the value added tax is detected in the country has been capitalized by bad actors and the country is losing so much money for VAT evaders.
Department of Revenue of Thailand to track VAT using DLT
Reportedly, the country's Revenue Department has put in place some measures to help it properly manage taxation and curb tax evaders, but many people and businesses still manage without paying value added tax. The Thailand Department of Revenue has arrested more than "60 companies and hundreds of individuals for defrauding the department of $ 18.29 million of baht in value added taxes (VAT)".
Recently, the general director of the revenue department – Ekniti Nititprapas has announced that he is convinced that blockchain technology could be the answer that the country is looking for at the moment.
Ekniti announced in a recent comment that the revenue department has initiated plans to conduct a blockchain process aimed at exploring its use case in relation to the monitoring of value added tax payments.
False VAT
Another problem faced by the revenue department is the question of the fake VAT invoice, which has become a very popular event within the country.
However, Ekniti has announced that the revenue department "has created a particular innovation laboratory to test the potential of blockchain in minimizing such cases, drawing inspiration from its case of use in the verification of bitcoin transactions".
He went on to say that:
"Blockchain is expected to help verify invoices that could help eradicate false invoices for VAT returns, for example, when a company buys products from a second company, the former will issue VAT invoices to this one and both. companies can use blockchain to confirm transactions. "
