Value Added Tax (VAT) payment is one of the key ways through which the government of any country is able to cater to its needs. The government of Thailand just like most governments across the globe is facing some serious issues when it comes tracking Value Added Tax payment. The weakness in the way through which Value Added Tax is tracked in the country has been capitalised by bad actors and the country is, therefore, losing a lot of money to VAT evaders.
Thailand’s Revenue Department to Track VAT Using DLT
The Country’s Revenue Department has reportedly put some measures in place to help it properly manage its taxation and curb tax evaders, but still a lot of people and businesses gets away with not paying Value Added Tax. The Revenue Department of Thailand has arrested more than “60 companies and hundreds of individuals for defrauding the department out of $18.29 million worth of baht in value-added taxes (VAT).”
Recently the director-general of the Revenue Department— Ekniti Nitithanprapas made it known that he is of the belief that blockchain technology could be the answer the country seeks right now.
Ekniti made it known in a recent comment that the Revenue department has commenced plans to conduct a blockchain trial aimed at exploring its use case in relations to tracking Value Added Tax payments.
Another issue faced by the revenue department is the issue of Fake VAT invoice which has becomes a very popular occurrence within the country.
Ekniti has however made it known that the revenue department “has set up a particular innovation lab to test blockchain’s potential in minimizing such cases while drawing inspirations from its use-case in the verification of bitcoin transactions.”
He continued by saying that:
“The blockchain is expected to help verify invoices which would help root out fake invoices for VAT claims. For example, when a company buys products from a second company, the former will issue VAT invoices to the latter, and both firms can use blockchain to confirm the transactions.”