EU Inches Toward Blockchain in Fight Against VAT Fraud

Europe is laying the groundwork for using blockchain—the record-keeping technology behind cryptocurrency—to fight the billions of euros lost in annual value-added tax fraud.

The technology already is on the near horizon for other purposes, including protecting personal data and streamlining tax information exchanges among countries.

European governments are under pressure to crack down on VAT evasion after a string of fraud scandals highlighted the vulnerability of the crucial revenue source. VAT is vulnerable to fraud because it relies on self-reporting and a disjointed system of rules and enforcement among European Union member countries.

Blockchain could solve many of the system’s ...