Thailand’s Revenue Department is running a pilot study to track Value Added Tax (VAT) payments using Blockchain Technology. Successful completion of this phase will lead to the full adoption of the platform. This means that the price added on goods as they pass along the supply chain will be verified to reduce the level of fraud.
Issued VAT Invoices to be Stored on Blockchain Platform
A media outlet’s publication reveals that a seller can issue VAT invoices to a buyer and the transaction will be recorded on Blockchain. Both participants will be fully aware of the data that has been stored and as such, it will be impossible to make false tax refund claims. Therefore, this is an innovative development that will bring about efficiency and transparency.
Ekniti Nitithanprapas, Director general of the country’s Revenue Department also made it known that machine learning and artificial intelligence will be employed. These systems will study the current methods that are used in defrauding the tax system. As such, activities of this nature will be tracked and easily decipherable on the platform.
Thailand to Become the First to Use Blockchain for VAT Payments
Blockchain will bring about provenance and transparency in these transactions and most importantly, it will aid in traceability. Its data cannot be tampered with, and if it does get updated at any time, everyone that has been granted access rights will see these changes simultaneously.
If the modern technology gets adopted, Thailand will be the first country to use Blockchain in verifying the genuineness of tax invoices. This will help to track fake invoices and over time, eliminate them entirely. Also, more people will be encouraged to adopt modern technology in this country.
Blockchain’s Application in Industries to Combat Fraud
Lately, several industries are employing Blockchain technology in combating fraud. Popular among them is the banking sector. Here, Indian Banks want to use the Distributed ledger Technology (DLT) to ensure secure messaging between banks. This will be made possible by allowing these banks to share the same DLT network.
The Shipping company, Modern Terminals has also made plans to use TradeLens, a Blockchain solution. This will allow them to keep detailed information on the contents of a container. Therefore, this will help to eliminate the paperwork and also reduce the level of fraud. At the moment, authorities have to rely on the data filed on paper to be the content of these vessels.