OECD Identifies Crypto and AI As Challenges to VAT Systems

The crypto economy and advancements in artificial intelligence are seen as “emerging challenges” to administering value-added taxes by the OECD, over 100 countries, and businesses.

The issue was discussed during the sixth meeting of the Organization for Economic Cooperation and Development’s forum on VAT Jan. 26 to Jan. 29.

Digital trade is accelerating and AI is reshaping the modern economy, Manal Corwin, director of the OECD’s Center for Tax Policy and Administration, said in a statement. Discussion among many countries is crucial “in supporting VAT policies that enhance compliance, reduce fraud risks, and adapt to emerging technologies,” she added. ...