Digitization of Value Added Tax Payment Control using Artificial Intelligence: Problems and Prospects

The author analyzes the problems arising from the digitalization of value-added tax (VAT) payment control using artificial intelligence. The economic and legal nature of VAT is examined, its role in forming the income part of the federal budget, the differences between VAT and the sales tax applied in several foreign jurisdictions, as well as modern trends in using the software complex ASC VAT – 2 for VAT payment control. The problems of legal regulation concerning the use of the ASC VAT – 2 software complex in tax control are identified. An examination of current judicial practices related to the use of data obtained from the ASC VAT – 2 software complex in proving taxpayer tax offenses has been conducted. This research utilized general scientific methods (dialectical method of scientific cognition, systematic method, methods of analysis, synthesis, generalization, induction, deduction, observation, explanation, interpretation, and classification, description of concepts and terms) and special legal methods (in particular, the formal-legal method). The research established that the data obtained from the ASC VAT – 2 software complex is used by tax authorities to identify and prevent tax offenses; however, it cannot serve as the sole evidence of a taxpayer's violation of tax legislation. Alongside the data collected from the software complex, tax authorities also gather and analyze other evidence indicating the commission of tax offenses. The conducted research shows that there is no normative regulation regarding the use of software complexes in the VAT payment control by tax authorities, which may lead to violations of the rights and legal interests of taxpayers. To address this issue, it is proposed to establish basic principles of using software complexes and responsibility of tax authorities to prove established during using of software complexes facts within the framework of tax control over VAT payment.

financial control, tax control, digital technologies, public interests, private interests, VAT, taxpayers, tax authorities, tax, control