A government agency in Thailand is experimenting with blockchain technology as a means of tracking tax payments on value added (VAT) in the country.
According to a relationship from the Bangkok Post on Monday, Thailand's revenue department is considering blockchain implementation to prevent fraudulent VAT refund requests in the country. VAT is a form of consumption tax applied to goods and services.
Ekniti Nitithanprapas, Director General of the Revenue Agency, said the blockchain would help to verify VAT invoices and, in turn, eliminate those that were not genuine. Reportedly, the agency plans to leverage other emerging technologies such as machine learning, artificial intelligence and Big Data to prevent tax evasion and fraud.
The news comes after a similar move by a tax administration in China in May. At that time, the Shenzhen National Tax Office collaborated with the Internet giant Tencent to use the blockchain in the fight against tax evasion.
The project aimed to create a digital invoice on a blockchain platform as evidence of purchase of goods and services, always in order to combat false invoices and "improve the process of supervision of invoices".
Thailand is starting to embrace blockchain technology in other areas as well. In June, the central bank of the country, the Bank of Thailand, said it was conducting a trial against its cryptocurrency tense make interbank transactions faster and cheaper.
And, in July, a self-regulated organization called the Thailand Bond Market Association said it was developing a system of private blockchain to accelerate the regulation of corporate bonds in the country.
Department of Revenue of Thailand image via Shutterstock