AI Slashes VAT Non-Compliance Tracking Time, OECD Official Says

Tax authorities are reporting a significant reduction in time spent tracking non-compliance with payments of value-added tax—from nine months to three—thanks to the use of artificial intelligence, an OECD official said Wednesday.

Using AI tools, some tax authorities have efficiently analyzed massive data sets while significantly reducing administrative costs in cleaning and analyzing data, said Hanna Lee, tax policy advisor at the Organization for Economic Cooperation and Development.

“This clearly demonstrates the immense potential that AI offers to tax administrations with limited resources and capabilities,” Lee said, at the OECD’s Tax and Development Days 2026 conference.

She added that ...