This chapter looks at some of the underlying mechanisms put in place by tax administrations to manage, safeguard, and govern data. It covers processes such as data governance, data collection, data sharing and data analytics.
Digitalisation and Digital Transformation in Tax Administrations
Regional Trends and Insights
Abstract
Data plays a central role in modern tax administrations, underpinning effective revenue collection, compliance enforcement, and evidence‑based decision‑making. As tax administrations increasingly transform into data‑driven organisations, they are handling ever‑growing volumes of data from a wide range of internal and external sources.
While the physical location of this data becomes less relevant under the Tax Administration 3.0 vision (OECD, 2020[1]), the need for robust mechanisms to manage, safeguard, and govern it has become more critical than ever. In this respect, slightly over 60% of tax administrations have a comprehensive data management strategy in place, with the highest percentage in Central and West Asia (90%), see Figure 4.1.
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands.
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
The expansion in data volumes has been accompanied by the development and deployment of more sophisticated approaches to data management and protection. These approaches are essential to ensuring data confidentiality and integrity, meeting legal and regulatory obligations, and sustaining taxpayer trust in the tax system. Effective data protection is therefore not only a technical requirement, but also a foundational element of institutional credibility.
At the same time, the digitalisation and digital transformation of tax administrations have enabled the growing use of advanced data analytics and AI‑driven automation. These technologies support the modernisation of processes such as the filing of tax returns, withholding tax calculations, and data sharing arrangements, as well as the broader delivery of digital taxpayer services. Their effective use depends on reliable, well‑governed data that can be accessed and applied securely and appropriately.
Strong data confidentiality, security controls, and high data quality standards also underpin the secure and effective exchange of information. This includes exchanges within economies, including with third parties, as well as between governments. Trust in domestic and international exchange frameworks relies on confidence that data is accurate, protected, and used in line with agreed purposes and legal safeguards.
Data governance lies at the heart of these efforts. By establishing clear roles, responsibilities, standards, and controls, data governance ensures the availability, quality, and security of data throughout its lifecycle. As the volume, variety, and use of data continue to expand, tax administrations are increasingly investing in comprehensive data governance frameworks and safeguards to ensure that data is stored, accessed, and used appropriately, both internally and externally, thereby reinforcing trust in the tax system as a whole.
Table 4.1. provides an overview of key data governance practices implemented by tax administrations, covering data quality, data access and security, data ethics, and emerging uses of AI as part of the data governance process. Central and West Asia report the highest levels across nearly all categories, with most indicators ranging between 90% and 100%. North, South and West Europe also demonstrate strong uptake in several areas.
Data quality: The importance of data quality cannot be overstated. Having accurate, complete and timely data is a necessity for any tax administration. In this respect, on average, 78% of administrations report assessing the quality of reported data, supporting accuracy, completeness and timeliness in tax processes.
Data access and security: Protecting data from unauthorised access is a key priority for tax administrations as data breaches, internally and externally, can undermine trust in the wider tax system. In this respect, 95% of administrations control user access to data, 80% have dedicated cyber security units, and slightly more than 80% engage external parties to test system security. In addition, three quarters of administrations report having systems in place to automatically detect unauthorised data access, while around two thirds employ a Data Privacy Officer.
Data ethics: 63% of administrations report having a data ethics framework in place to guide the responsible use of data.
AI and data governance: The use of AI within data governance processes remains relatively limited, with 15% of administrations reporting its use, although this is an area where further uptake may be expected as analytical capabilities mature. Here, Africa reports the highest rate at 29%, nearly double the average.
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
Guatemala – Data governance framework
In the field of data governance, the tax administration of Guatemala (SAT) has established an administrative and technological framework which includes a formally defined data governance macro-process incorporated into the institution’s Macroprocess Map, together with six officially approved procedures aligned with this framework.
This structure enables (i) the definition and implementation of the institutional data governance model and strategy; (ii) the collection, validation, standardisation, and integration of data into the institutional data warehouse; and (iii) the subsequent distribution and use of data across the organisation.
Recent actions undertaken include:
The development and adoption of institutional policies designed to ensure the efficient, secure, and transparent management of data, promoting data quality, protection, and strategic use. These include policies for data management, data quality, data security and data confidentiality.
The implementation of a data literacy strategy aimed at strengthening the technical and analytical capabilities of staff and fostering a data-driven culture throughout the institution.
The establishment of data quality monitoring and control mechanisms within the institutional data warehouse, focused on a prioritised set of data sources. These mechanisms support the timely identification and correction of errors, ensuring that data remains reliable, accurate, consistent, complete, and maintains its integrity.
Maldives – Data governance framework for a reliable and effortless tax system
As tax administrations increasingly rely on digital technologies, data has become a strategic asset. For the Maldives Inland Revenue Authority (MIRA), the effective governance of data is important to achieve its strategic objectives of delivering a reliable, transparent and effortless tax system.
As the tax authority of Maldives, MIRA collects over 84% of government revenue and has access to sensitive personal and financial information of over 86 000 taxpayers. This puts an obligation on MIRA to ensure that the confidentiality of taxpayer data is adhered to, and the data is used in a manner that safeguards taxpayer rights and in accordance with legal and regulatory requirements.
While MIRA has achieved high levels of digital adaptation with over 94% of returns filed electronically and over 95% of payments processed through online platforms, the backend of this system is supported by over 60 internal systems including core systems and payment platforms where data is held in silos. For the past 16 years, MIRA has been operating without formalised data ownership and catalogue, creating practical challenges including inconsistencies and incompleteness in data.
To address these challenges, an initiative was launched to establish a structured data governance framework under the Strategic Plan 2025-2028 and the 10-year Digital Transformation Roadmap of MIRA. With the support from the United Nations Development Program and technical expertise from Norway Registers Development AS, a data governance mission was launched in December 2025.
The development of this framework involved comprehensive desk reviews and stakeholder consultations to ensure that the framework fits best with the tax administration system and legislative framework. The framework establishes a centralised governance model with three levels, strategic oversight through the digitalisation committee, operational coordination through the data governance council, and domain-level accountability through data owners and data stewards. A core set of fourteen policies was reviewed to address all key areas of data management with focus on data sharing practices. Changes to these policies are underway. Further, an enterprise data catalogue is also being developed. This catalogue will provide a structured inventory of data assets, including ownership, classification, system location, and governance requirements.
Looking forward, MIRA has been actively working on upskilling the staff with the knowledge and practical skills needed to manage data appropriately in their daily work and providing specialised training in key areas of data governance. MIRA aims to achieve a full adaptation of this framework by 2029.
Mauritius – Data access, security, and privacy
The Mauritius Revenue Authority (MRA) manages sensitive taxpayer information, requiring robust systems to ensure confidentiality, integrity, and availability. An Information Security Management System (ISMS) has been implemented at the MRA that has achieved ISO 27001 certification. This is for the protection of tax related information acquired, stored and communicated through the MRA’s Data Centre.
Protecting data from unauthorised access is a key priority for the MRA given that data breaches, whether internal or external, can severely undermine public trust, compromise taxpayer confidentiality, and weaken confidence in the wider tax system’s fairness and reliability.
The MRA enforces strict user data access controls, supported by an IT security unit. Additionally, external IT security experts are engaged to independently test, validate, and strengthen system resilience against evolving threats, ensuring layered protection and accountability.
Independent external security auditing provides objective assurance of system integrity. Regular compliance reviews, and audits validate internal controls, highlight vulnerabilities, and ensure the MRA meets international standards for data protection and IT governance.
Advanced monitoring systems are deployed to automatically detect unauthorised data access attempts. These systems provide real-time alerts, enabling rapid response, investigation, and remediation, thereby minimising risks of data compromise and ensuring taxpayer information remains secure and confidential.
Automated threat detection tools continuously analyse network traffic, user behaviour, and system logs. The MRA identifies anomalies early, preventing potential breaches and ensuring proactive defence against sophisticated security threats.
The MRA employs strong encryption practices to protect sensitive taxpayer data. Encryption keys are securely managed, ensuring compliance with global standards while preventing unauthorised interception, manipulation, or disclosure of confidential information.
Through layered security controls, proactive monitoring, and independent validation, the MRA demonstrates its commitment to safeguarding taxpayer data, reinforcing trust, and ensuring the resilience of revenue collection systems.
Sources: Information provided by Guatemala (2026), Maldives (2026) and Mauritius (2026).
Receiving data from taxpayer business systems and third parties
The increasing availability of data in electronic form has fundamentally transformed how tax administrations collect, access, and integrate information. Rather than relying primarily on taxpayers to extract, process, and submit data through paper or online forms, tax administrations are increasingly receiving data directly from taxpayers’ business systems and from third parties. This shift requires close collaboration with third parties to ensure that data flows are accurate, secure, and reliable.
As seen in Chapter 3, APIs are playing an increasingly important role in enabling automated, standardised, and scalable data exchanges. In parallel, new technological approaches are emerging that allow tax administrations, subject to appropriate safeguards, to access relevant data directly within taxpayers’ natural systems, further reducing reporting burdens while increasing data quality and timeliness.
As part of pay-as-you-earn (PAYE) systems tax administrations have received data directly from employer business systems since many years. As Table 4.2. highlights, for just over 60% of administrations this is now also the case for other data beyond PAYE. Adoption is strongest in Central and West Asia (80%), followed by Central and East Europe (71%). Among those administrations, almost all indicate that some data can be uploaded manually via dedicated interfaces, while 82% indicate at least some data can be transmitted automatically through machine-to-machine connections without human intervention. Automatic machine‑to‑machine transmission reaches 90% in Latin America and the Caribbean, Africa, and Central and East Europe. Manual uploads are between 90–100% across most of the regions.
For data received directly from third parties, most regions show strong adoption with 75% of administrations receiving data directly from them. As with data received from taxpayer business systems, the vast majority of these administrations (90%) allow data to be uploaded manually through dedicated interfaces, and around 80% support the automatic transmission of at least some data through machine-to-machine processes. Automatic transmission is highest in the Central and East of Europe at 92%.
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands.
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
Finally, a small share of administrations (17%) indicate that their IT systems can routinely access data stored in taxpayers’ natural systems, with the highest percentage in the Latin America and the Caribbean region (31%), see Figure 4.2.
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands.
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
Azerbaijan – Implementation of the e-cash register system
The e-cash register system is an integrated digital solution designed to manage cash settlements through electronic recording and online data exchange. It functions as a software-hardware complex with a built-in control mechanism that enables transaction data to be recorded electronically and transmitted to the information systems of the State Tax Service (STS) creating a centralised framework for handling cash settlement information.
The transition to the e-cash register system began in 2019 and was completed in 2022.
The system's operational process is based on continuous online interaction. Data generated at the point of sale is encrypted and sent from the e-cash register to the STS server, where it is accumulated and stored. The data is then processed within the STS information systems and made available through the e-cash register monitoring platform, which allows authorised users to supervise register operations, perform technical checks, and review and analyse statistical data related to transactions.
An important feature of the system is the updated format of receipts. Each receipt contains a QR code and a unique identification element, enabling customers to verify the validity of a receipt by checking its registration in the STS database. This mechanism supports oversight of cash settlements and improves transaction traceability.
The year-on-year growth rates for turnover recorded through cash registers is 13.64% and for non-cash transaction is 34.17%.
The system required next-generation cash registers which are constantly linked to the STS’s servers. Those cash registers have also been crucial to the "VAT Cashback" initiative which, if certain conditions are met, allows customers to reclaim parts of the VAT paid. By bridging the gap between physical retail and digital tax systems, they have fundamentally changed how commerce works in Azerbaijan.
The "VAT Cashback" project has effectively turned every consumer(end-user) into a voluntary “tax auditor”. Customers now actively demand their VAT receipts which is only possible if the merchant is a registered VAT payer and uses a modern cash register device. This shift in behaviour has made it increasingly difficult for businesses to manipulate their turnover, significantly shrinking the "shadow economy". Cases of tax evasion decreased, and cashless turnover in retail trade outlets increased by up to threefold.
Fiji – Electronic fiscal device and VAT monitoring system
Fiji has introduced an Electronic Fiscal Device (EFD) Regulation designed to modernise the transmission of Sales Data from businesses' point of sales systems to the Fiji Revenue and Customs Service on a real-time basis. This platform enhances transparency, data accuracy, and strengthens compliance. It allows the matching of sales data declared in the tax returns filed by taxpayers against the sales data reported through the EFD platform.
Benefits include the identification of anomalies on time, such as the use of correct VAT rates, correct application of zero-rated VAT, detecting discrepancies promptly, thus reducing opportunities for under-reporting, under-payment of sales or overclaiming of expenses and refunds by customers or third parties. VAT accounts for 40 per cent of Fiji's total tax revenue and the adoption of EFD safeguards government revenue.
Romania – From periodic declarations to a data-driven compliance ecosystem
Historically, the Romanian tax administration relied on a compliance model primarily based on periodic, aggregated tax declarations providing limited, delayed and fragmented data, constraining risk analysis capabilities and the ability to address the VAT gap promptly.
Aiming to implement a structural transformation by moving beyond digitised forms towards establishing a data-centric compliance framework, the digital strategy of the Romanian tax administration comprised of multiple reporting and data-exchange instruments under a unified compliance objective.
Two complementary digital reporting systems were implemented:
Standard Audit File for Tax (SAF-T) – a standardised XML file automatically generated by the taxpayers’ internal systems, comprising structured accounting and financial data, based on the OECD 2.0 version. The SAF-T mandatory filing was gradually introduced starting in 2022, for large taxpayers, and continuing until 2025 for all categories of taxpayers.
RO e-Factura – a nationwide electronic invoicing system allowing near real-time transmission of transaction-level data through APIs, based on semantic standardisation of invoice data in line with European Union standards. The system was mandatorily introduced in 2022 for Business-to-Government (B2G) and other categories of transactions and subsequently extended to Business-to-Business (B2B) and Business-to-Consumer (B2C) transactions in 2024.
These systems form the backbone of a centralised fiscal data environment, enabling cross-validation, automated checks and advanced analytics. Rather than implementing isolated tools, the focus was placed on interoperability, data standardisation and reuse of information across processes.
The implementation of both systems resulted a number of challenges for taxpayers, including increased compliance costs for adjusting to those systems, steep learning curves, the management of very large data volumes, and the need to strengthen data governance and analytical capabilities. These issues are being addressed through ongoing technical improvements, guidance, and capacity building.
Despite those challenges, the benefits for the tax administration and for taxpayers are significant. For the tax administration, they include earlier identification of compliance risks; improved targeting of audits and controls; and reduced reliance on ex-post, resource-intensive inspections. From a taxpayer perspective there is an increased clarity and predictability of tax obligations; a reduced frequency of ad-hoc information requests; and a foundation for future prefilled returns and automated reconciliations.
Ukraine – Digital transformation of tax control: Implementation of the “E-Audit” system
Starting from December 2025, the deployment of the electronic audit information and communication system (ICS) “E-Audit” has become one of the key steps in the digital transformation of the State Tax Service and the modernisation of the tax control model.
The main goal of introducing the ICS “E-Audit” is to increase the efficiency, transparency and objectivity of tax audits of large taxpayers by automating the collection and analysis of accounting data. The system enables advancing from labour-intensive manual audits to automated analysis of large arrays of accounting and tax data made available by the large taxpayers. This significantly minimises the impact of the human factor, reduces the duration of tax control measures, improves their quality and reduces the administrative burden on tax authorities and businesses.
Unlike traditional audits, which are mainly based on selective manual analysis of documents, “E-Audit” uses modern digital tools, tests and data processing algorithms. The system quickly identifies potential tax risks or discrepancies, which allows the auditor to quickly investigate transactions and provide substantiated analytical conclusions on an evidentiary basis.
The technological basis is an integrated IT solution using the standardised XML format Standard Audit File for Tax (SAF-T), which ensures the unification of the data structure, its automatic integration and validation within the State Tax Service information systems.
As part of the ICS “E-Audit” pilot implementation, more than 900 SAF-T test files of taxpayers were processed, improving the functionality of the system, the analytical algorithms and preparing it for full-fledged deployment. In general, the new system contributes to the transition of the State Tax Service of Ukraine to a modern, risk-oriented model of tax control based on automation, digital technologies and international tax control standards.
Sources: Information provided by Azerbaijan (2026), Fiji (2026), Romania (2026) and Ukraine (2026).
The OECD report Tax Administration 3.0 and Connecting with Natural Systems: Initial Findings (OECD, 2022[3]) examines the issues and challenges related to moving towards connected data systems, and explores the issues that stem from managing the availability, quality and accuracy of data that is drawn remotely from taxpayers’ natural systems.
Use of data for return prefilling
One of the most significant developments in the tax return process in recent years has been the expansion of prefilled tax returns, which reduce compliance burdens and administrative costs for taxpayers. Under this approach, tax administrations prepopulate returns with data obtained from third parties, allowing taxpayers to review, confirm, or amend the information before filing electronically or on paper. Initially developed for PIT, return prefilling has expanded to other tax types as digital reporting infrastructures have matured. Technologies such as electronic invoicing systems have enabled prefilling for VAT and, in some economies, elements of CIT.1
As shown Table 4.3., just over 60% of administrations report prefilling PIT returns with the data that they have collected, while 31% prefill VAT returns and 22% CIT returns. Across regions, prefilling of PIT returns is most advanced in Europe, where over 85–90% of administrations prefill PIT returns. For CIT and VAT, Latin America and the Caribbean show the highest adoption, with around 50% of administrations offering prefilling of such returns.
As the table also shows, for certain taxpayers, administrations fully prefill tax returns with all required data, allowing them to submit the return without making any changes. This approach reduces compliance burdens, improves accuracy, and reflects a more advanced stage of data use, where administrations can reliably combine third‑party and taxpayer information to produce complete returns. Using this approach, North, South and West Europe report the highest use of fully prefilled PIT returns (88%).
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
The OECD Tax Administration publications, such as the 2025 edition (OECD, 2025[4]), contain more detailed information on this topic, including a large number of examples of prefilling developments in different economies.
To enable the full prefilling of information, some economies are simplifying their tax rules. Table 4.4. shows that 46% of economies have done so, using a range of approaches to simplify the rules. This is particularly the case in Latin America and the Caribbean where 67% of economies report making use of such measures to allow for the prefilling of returns.
When looking at the particular approaches taken, 57% of the economies report having simplified or reduced the number of taxable deductions or allowances, and 52% report having created special tax regimes with simplified rules for calculating income.
Percentage of economies with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands.
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
Percent of administrations that receive the respective data to prefill tax returns
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands.
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
The extent to which a return can be prefilled is generally determined by the range of electronic data available to the administration, which comes from a variety of third-party data providers. Table 4.5. highlights that across all regions other government entities are the most common source of data used for prefilling (76%), particularly in Asia and Europe. Data from banks and insurance companies is also widely used (67%), especially in the Pacific Islands, and in North, South and West Europe.
Beyond these main sources, a significant share of administrations also receives data from taxpayer accounting systems and e-invoicing systems, reflecting the growing role of digital business reporting infrastructures in supporting prefilling. E‑invoicing systems are a key source of data in Latin America and the Caribbean (82%), as well as in Central and West Asia (75%). Data from online marketplaces, online platforms and online cash registers are less widely used, though this varies across regions.
Benin – Electronic invoicing reform
Benin has undertaken a modernisation of its tax administration as part of a broader effort to strengthen domestic revenue mobilisation and enhance transparency. In response to persistent challenges such as VAT fraud, undeclared transactions, and the strong presence of informal sector activities that erode the tax base, Benin introduced since 2018 a standardised electronic invoicing system as a central pillar of its digitalisation strategy.
This reform requires businesses to issue invoices through certified electronic systems that automatically transmit transaction data to the tax administration, ensuring greater accuracy and real‑time oversight.
Key elements of the reform include:
A central validation platform managed by the tax authority to receive and authenticate invoices.
Mandatory use of compliant invoicing tools (electronic and physical) for registered businesses.
Real‑time or near‑real‑time reporting, enabling better VAT monitoring.
Public awareness and training campaigns to help taxpayers transition to the new system.
Benin introduced electronic invoicing gradually, beginning with large taxpayers through a pilot phase that allowed the administration to refine procedures, solve technical issues, and adjust communication to different groups. The system was then extended to all category of businesses (smaller, medium and large). Throughout the rollout, authorities focused on strong user support, clear guidance on compliance requirements, and close collaboration with software providers to ensure the system functioned smoothly.
Even in its early stages, the reform produced noticeable improvements. VAT compliance increased thanks to the automatic validation of invoices, while fraudulent practices such as manipulation and under‑reporting declined. Transaction traceability improved, enhancing trust in the tax system, and outreach efforts helped taxpayers better understand their obligations. Nowadays, all tax returns are filed electronically trough Benin tax management system (SIGIBE).
Importantly, the reform also generated consistent, structured data, opening new opportunities for analytics, risk‑based controls, and more effective cross‑checking.
Lessons Learned
Benin’s electronic invoicing reform faced several challenges. Many small businesses had limited digital skills, and companies unfamiliar with formal invoicing struggled to adapt. The tax administration also had to maintain the system continuously and ensure strong cybersecurity. Despite these obstacles, progress remained steady thanks to strong political commitment and sustained taxpayers support to the reform.
From this experience, several lessons stand out. A gradual rollout made adoption easier, while clear communication and training helped build trust. Keeping the system simple encouraged higher compliance and fewer errors. Collaboration with private software providers strengthened implementation. Overall, the reform shows that despite early difficulties, digitalisation generates lasting benefits in transparency, fairness, and revenue mobilisation. Additionally, electronic invoicing has also enabled several companies to improve their accounting practices.
Chile – Digital VAT compliance: Integrated purchase and sales ledger and pre-filled returns
The Chilean tax administration (SII) has implemented a structural technological initiative aimed at modernising VAT compliance and enforcement. This initiative is built upon an integrated digital architecture that connects the purchase and sales ledger (Registro de Compras y Ventas, RCV) with the proposed pre-filled monthly VAT return.
The purchase and sales ledger, mandatory since 2017, builds upon the prior widespread adoption of Electronic Tax Documents and on automated, standardised platforms capable of processing large volumes of data. Based on the information contained in electronic invoices, receipts, and credit and debit notes, SII automatically and continuously generates taxpayers’ purchase and sales records. This eliminates the obligation to maintain physical or electronic accounting books for purchases and sales, significantly reducing administrative burdens and mitigating risks associated with manual record-keeping.
Building on this data infrastructure, since 2017, SII has made available to taxpayers a proposed monthly VAT return, automatically generated from the RCV. This tool incorporates calculation engines, cross-check validations, and consistency controls, enabling the prefilling of the main fields of the return. It promotes a preventive compliance and self-correction approach, facilitating the early identification of inconsistencies prior to formal submission.
From a technological and compliance perspective, the initiative enables the use of advanced analytics, large-scale data matching, and risk segmentation. This enhances the targeting of audit and control actions and strengthens the detection of atypical behaviours or potential VAT evasion schemes.
This approach is aligned with the OECD publications Tax Administration 3.0 (OECD, 2020[1]) and Technology Tools to Tackle Tax Evasion and Tax Fraud (OECD, 2017[5]), which advocate for pre-filled systems, intensive data use, and preventive controls embedded within the filing process.
Key challenges remain, including ensuring data quality at source, achieving accurate tax classification of transactions, and promoting consistent digital adoption across all taxpayer segments. Taken together, the RCV and the proposed VAT return constitute a central pillar of SII’s digital transformation strategy.
Colombia – Electronic factoring: The RADIAN central registry model
In Colombia, the electronic invoice has the legal status of a negotiable instrument. Its full lifecycle traceability is ensured through RADIAN (Registro de la Factura Electrónica de Venta como Título Valor), a centralised platform administered by the tax administration (DIAN). RADIAN also records electronic factoring transactions carried out using these instruments.
Key figures (cumulative 2021-2025):
Authorised users registered in RADIAN: 46 542
Registered invoices: 6.1 million
Endorsed invoices: 5.7 million
Total negotiated amount: COP 131.5 trillion
Annual negotiated volume as % of GDP: 2.5%
RADIAN enables comprehensive and centralised traceability by consolidating all electronic factoring-related events within a single official platform. This framework ensures legal certainty, uniqueness of records, and ex ante control for issuers, buyers, factors, and trading systems, thereby mitigating operational and fraud risks. Supported by DIAN and its regulatory framework, the model allows for real-time data exchange.
The platform is designed to process factoring transactions automatically. It does not require manual intervention to register operations conducted directly by the invoice issuer or through third parties such as factoring entities, trading platforms, or technology providers, ensuring scalable interoperability across the ecosystem.
The technical and legal framework allows for deeper interoperability and automation through APIs and machine-to-machine communication. This expands access to financing for micro, small, and medium-sized enterprises and aligns the ecosystem with the Tax Administration 3.0 vision as described by the OECD (OECD, 2020[1]).
DIAN is currently developing additional electronic services to enable invoice issuers to share data with authorised third parties in a systematic, traceable, and structured manner through RADIAN. These efforts, combined with regulatory improvements under development and led by the Ministry of Commerce, aim to strengthen the generation of negotiable instruments and further deepen the factoring market.
Côte d'Ivoire – VAT Digitisation and the adoption of electronic invoicing
As part of the modernisation of public administration, the Ivorian Government launched an e government initiative in 2011 the “e Administration Programme.” Within this framework, the Directorate General of Taxes (DGI) adopted digital transformation to optimise revenue collection, combat fraud, and simplify procedures, leading to major reforms such as the VAT digitisation in 2022 and the introduction of standardised electronic invoicing in 2025.
Digitization of Value Added Tax (VAT)
Implemented by the DGI since 2022, the “Digitised VAT Administration” module (ADMIN VAT) performs ex‑ante controls of VAT deductions claimed in monthly electronic VAT returns. Its primary objective is to ensure that deductible VAT has been properly declared and paid to the public treasury by the supplier or service provider.
The tax administration cross‑checks data from its internal systems with information from the customs administration, particularly for imports, as well as with other tax filings. The module applies legal VAT deductibility rules by verifying that the supplier is subject to VAT, that the VAT claimed has been declared and paid upstream, and that deduction deadlines have not expired. Any anomaly automatically results in the rejection of the VAT deduction.
A key benefit of this reform is the enhanced role of taxpayers in VAT control. To preserve their deduction rights, taxpayers are encouraged to verify that suppliers are registered with the DGI and compliant with VAT obligations. Failure to do so may lead to the loss of deduction entitlement.
The reform has significantly increased domestic VAT revenue and its share of government resources. In 2025, VAT collected by customs reached CFAF 1,037 billion (49.9%), while DGI collections totalled CFAF 1,041 billion (50.1%), reversing the trend observed from 2013 to 2023.
Generalisation of the use of standardised electronic invoicing
Introduced in 2025, the generalisation of standardised electronic invoicing represents another major structural reform. It relies on the implementation of the Facturation Normalisée Électronique (FNE) Platform, a public system that allows businesses to issue, certify, and transmit invoices electronically and in real time to the DGI.
The reform aims to ensure full traceability of economic transactions and to strengthen VAT monitoring. As of March 2026, nearly 70 000 enterprises had registered on the platform, with a usage rate of 67% and approximately 19 million invoices issued.
Kenya – Electronic Tax Information Management System (eTIMS)
The KRA’s Electronic Tax Invoice Management System (eTIMS) is a software solution designed to support the transmission of tax invoices for purposes of value added tax (VAT) reporting.
The eTIMS system captures and validates VAT invoices in real time at the point of transaction. Through integration with iTax (KRA’s domestic tax management system), transaction data from eTIMS is used to auto-populate VAT returns, reducing the need for manual data entry by taxpayers. Output VAT is pre-filled based on issued invoices, whilst input VAT claims are validated against supplier-declared invoices in the system.
This approach shifts compliance from post-filing audits to transaction-level assurance, minimising errors and fraudulent claims. The automation improves data accuracy, enhances transparency, and accelerates refund processing through verified invoice trails. It also reduces compliance costs for businesses by simplifying the return preparation process.
Overall, the initiative demonstrates how digital integrations and real-time reporting can embed compliance into the tax ecosystem while strengthening revenue integrity.
Malaysia – MyInvois system
The Inland Revenue Board of Malaysia (IRBM) is implementing e-invoice as part of the nation’s digital transformation agenda. This initiative modernises tax administration, strengthens compliance, and reduces the tax gap by introducing a centralised, automated invoicing system. Through near real-time validation, e-invoice enhances transparency, minimises tax evasion, and improves enforcement across the tax ecosystem.
The system simplifies invoicing by reducing manual processes and errors, streamlining tax return filing, and supporting digital financial reporting aligned with international standards. Businesses benefit from improved operational efficiency, faster processing, and audit readiness, while tax authorities gain better visibility and data accuracy.
Implementation follows a phased approach, starting on 1 August 2024 and gradually expanding to all taxpayers by January 2026. The MyInvois platform comprising a portal, a mobile app, and a free electronic Point-of-Sale (e-POS) system for micro and small enterprises enables seamless e-Invoice generation, submission, and integration with business systems. Features such as QR codes for auto-filling buyer details and TIN search enhance convenience and accuracy. Four document types are supported: invoice, credit note, debit note, and refund note.
The legal framework, established through the Income Tax (Issuance of Electronic Invoice) Rules 2024, mandates e-invoice issuance and outlines penalties for non-compliance. Security is prioritised through encryption, authentication, and ISO-certified standards. Adoption is growing rapidly, with over 979 million e-invoices issued by 3 February 2026.
IRBM is actively promoting the MyInvois system to increase compliance for all taxpayers by 2026. Current developments include leveraging e-Invoice data for advanced analytics and implementing upgrades to enable pre-filled tax returns, reinforcing IRBM’s commitment to a transparent, efficient, and digitally empowered tax ecosystem.
Peru – Electronic invoicing and factoring
The Peruvian tax administration (SUNAT) remains committed to strengthening tax compliance and reducing the costs associated with this process. To that end, it promotes actions aimed at managing compliance risks through solutions that generate added value and deliver positive impacts for taxpayers and customs users.
Within this framework, the government established measures to promote financing for micro, small and medium-sized enterprises (MSMEs), entrepreneurs, and startups. The measures introduced mechanisms to facilitate access to capital through the commercialisation of electronic payment vouchers as negotiable instruments. Under this regulation, electronic invoices and electronic fee receipts issued on credit must state without admitting evidence to the contrary and as of the date of issuance the agreed payment term and the outstanding net amount.
As part of this policy, in December 2021 SUNAT implemented the “Conformity Platform,” enabling purchasers to validate electronic invoices in a secure and efficient manner. This functionality has been instrumental in boosting the factoring market:
Once eight days have elapsed after an invoice acquires “conformed” status, it becomes eligible to be converted into a negotiable invoice and traded through the Central Securities Register and Depositary of Peru (CAVALI).
For MSMEs, this translates into immediate liquidity.
It significantly reduces traditional waiting periods, which previously ranged from three to four months.
By the end of 2025, more than 89 million invoices had been confirmed and approximately PEN 53 billion had been negotiated, representing a 22% increase compared to 2024.
These results consistent with the figures reported by CAVALI consolidate an ecosystem that promotes business liquidity and strengthens financing opportunities for small and medium-sized enterprises across Peru.
Sources: Information provided by Benin (2026), Chile (2026), Colombia (2026), Côte d’Ivoire (2026), Kenya (2026), Malaysia (2026) and Peru (2026).
Data sharing – within tax administrations, across government, and with third parties – is a core component of digital transformation. Well-designed data‑sharing frameworks can significantly reduce administrative burdens for taxpayers and citizens, while enabling tax and other government processes to become more integrated, efficient, and seamless over time.
Many governments are moving towards the implementation of the once‑only principle, under which individuals and businesses provide information only once to a public authority, after which it can be securely shared among other government agencies and reused for multiple purposes. Tax administrations play a central role in this ecosystem, as they typically hold up‑to‑date information on identity, income, and accounts, manage payment flows, and already operate large‑scale information exchange mechanisms with third parties.
Data sharing internally and within government
For many tax administrations the ‘collect once, use many times’ approach starts internally with 80% of them having an enterprise data management system that allows taxpayer information to be viewed across the administration. All administrations in the Central and West Asia region have such systems, followed by Latin America and the Caribbean and North, South and West Europe with around 90%, see Table 4.6.
Table 4.6. also shows that more than 80% of administrations share bulk information with other government agencies (or even provide them with direct access to information) and / or receive bulk information from other government agencies or have direct access to information they hold. In Latin America and the Caribbean all administrations have such arrangements in place, followed by Europe and Central and West Asia. Moving away from data silos both within and across government agencies will significantly reduce burdens and will enable taxation processes and other government procedures to become more seamless for citizens and businesses.
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
Beyond information sharing among public agencies, many economies have begun developing common cross-government databases to support more integrated data use. As shown in Table 4.7., 55% of administrations report the existence of such databases, particularly in Central and East Europe and Latin America and the Caribbean. These shared data infrastructures can simplify access to authoritative information, help ensure that public agencies work with up-to-date data, and reduce reporting burdens by enabling citizens and businesses to provide information only once.
Where common databases exist, they most frequently cover core registries, including population, property, business and motor vehicle registers. On average, cross government business registers are the most common overall (81%), followed by population (78%) and property registers (76%). Also, in some regions, certain types of cross government registers are in place in all economies that reported the existence of such databases, for example, property registers in Africa or population registers in Central and East Europe.
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands.
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
The MRA has implemented a robust data management strategy anchored on the principle of “collect once, use many times.” Internally, MRA leverages its core tax system, an integrated Data Management System, and Business Warehouse to consolidate taxpayer and third-party data into a single repository. This unified system eliminates silos, ensures accuracy, and provides a 360-degree taxpayer view, enabling targeted audits, risk-based compliance, and improved decision-making. Strict access controls safeguard sensitive information while enhancing operational efficiency.
Beyond internal integration, MRA participates in cross-government data sharing through the Mauritius InfoHighway, a national platform designed to enforce the Once-Only Principle. This infrastructure enables real-time, secure data exchange between agencies without storing data in transit, ensuring integrity and immediacy. Key data sources include civil status records, vehicle registration details, and corporate registration information. These integrations allow MRA to automate validations, accelerate service delivery, and support evidence-based policymaking.
The InfoHighway operates under a Publish-Subscribe model with multi-layered security and governance, reducing administrative burdens and generating cost savings. Additionally, legislation empowers MRA to request supplementary data – such as building permits, property transfers, and major procurement transactions – from other institutions. These datasets feed into business intelligence reports for compliance monitoring and predictive analytics.
By consolidating data and enabling secure sharing, MRA is transitioning from traditional audits to data-driven compliance strategies, supporting government social programmes and improving taxpayer services. This initiative strengthens Mauritius’s capacity to leverage data for efficient, transparent, and citizen-centric tax administration.
Source: Information provided by Mauritius (2026).
Data sharing with non-government third parties
In addition to sharing data within government, administrations are also increasingly sharing individual taxpayer data with non-government third parties, for example, to improve the collection of withholding taxes.
As shown in Table 4.8., data sharing is most commonly undertaken with tax intermediaries and financial institutions, each reported by 30% of administrations. Data sharing with employers, withholding agents and other third parties is less common. Administrations from Europe report the highest levels of data sharing with non-government third parties. Additional information as to whether the data sharing is done automatically, or if data sharing is initiated by the taxpayer can be found online in the ITTI database (OECD et al., 2025[2]).
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands.
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
The State Tax Service of Ukraine has introduced a digital mechanism for electronic interaction with banks and other payment service providers to enforce the collection of tax debt from taxpayers' accounts. The goal is to replace the paper-based, slow and labour-intensive procedure with a fully electronic, transparent and fast process of following the debt at all stages of its collection and recovery.
Previously, the exchange of paper-based documents for debt collection, between tax authorities, the treasury and the banks involved long processing times (up to a month) and a significant workload for debt officers. There was also no possibility of operational monitoring, and the procedure had low efficiency due to the limited validity periods of payment orders.
The new mechanism is built on end-to-end electronic data exchange between the State Tax Service, the Treasury, the banks and the national payment system. An accounting of debt amounts subject to collection is structured and based on decisions of tax authorities and courts allowing the newly developed system to automatically generate and send electronic payment orders without manual intervention.
The new process allowed for a reduction of the process execution time from one month to one day, the ability to track the status of payment orders, and an increase in collection efficiency by almost 4 times.
In the first 4 months of the system’s rollout, about 5 million orders were generated, more than 25 thousand debtors were managed, and more than UAH 0.5 billion was collected. The digitalised tax debt collection system reduced paper turnover, administrative burden, and ensured transparency and real-time control of tax arrears.
Source: Information provided by Ukraine (2026).
With tax administrations holding vast amounts of structured data, it is no surprise that certain stakeholders have an interest to access such information for analytical purposes, such as for research and statistical projects. To protect taxpayer privacy and confidentiality such data is anonymised.
As illustrated in Table 4.9., almost two thirds of administrations share anonymised taxpayer data on a confidential basis with third parties for analytical purposes. Across regions, the highest adoption of this approach is found in Latin America and the Caribbean (81%), followed by Europe (over 70%).
In terms of the type of third parties that receive anonymised taxpayer data, statistics offices are the most common recipients with just over 80% of administrations sharing data with them, reaching 100% in several regions, including Africa and the Pacific Islands.
Academic and research institutions are also frequent recipients, with just over half of administrations sharing anonymised data for research purposes, the highest share is in Africa, where nearly 82% of those administrations that share data for analytical purposes report doing so with academic partners.
Central banks and International Organisations receive data in several regions, most notably in the Pacific Islands (75%) and Africa (73%) as well as Latin America and the Caribbean (85% in relation to Central Banks).
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
In April 2025, SAT launched the tax statistics platform SATData+. The platform features a strategic design that facilitates data access and analysis through dynamic tools and interactive visualisations, enabling self-service access to detailed information on Guatemala’s tax system for both public and private stakeholders.
SATData+ represents a significant milestone in the modernisation of tax administration in Guatemala and reflects the institution’s commitment to digital transformation and to enhancing efficiency and transparency in services provided to taxpayers.
Source: Information provided by Guatemala (2026).
Data analytics has become an integral part of modern tax administration, supporting both day‑to‑day operations and strategic decision‑making. By systematically analysing large and diverse datasets, tax administrations can improve the efficiency and effectiveness of their core functions, while also identifying new opportunities to enhance compliance and service delivery. In particular, data analytics can support risk assessment, compliance management, and audit selection by identifying patterns, trends, and anomalies in taxpayer behaviour. These capabilities strengthen the ability of tax administrations to detect and prevent tax fraud and non‑compliance, while enabling more targeted and proportionate interventions.
As shown in Table 4.10., two thirds of administrations have big data capabilities in place, including the necessary people, skills and infrastructure. Complementing these capabilities, around three‑quarters (74%) of administrations rely on enterprise‑wide business intelligence and visualisation tools, and close to 40% of administrations use analytics for real-time tax fraud detection and prevention.
Big‑data capabilities are strongest in North, South and West Europe (90%), Central and West Asia (80%), and Latin America and the Caribbean (75%). These regions also record the highest uptake of real‑time analytics for tax‑fraud detection and prevention. By contrast, the adoption of enterprise‑wide business intelligence and visualisation tools is more widespread overall.
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands.
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
The availability of appropriate capabilities, skills and infrastructure is a critical enabler of effective data use. Building on these capabilities, many tax administrations report using big data for a range of analytical purposes. Where they do not have such capabilities in-house, they may use external parties, such as consultants, to assist with such analysis.
As illustrated in Table 4.11., use of big data for analytical purposes is widespread, with 72% of administrations reporting its use. Adoption is highest in Central and West Asia (100%), followed by Europe and Latin America and the Caribbean, where levels range between 75% and 86%.
The most common use cases include improving compliance (91%). Big data is also used for identifying trends (77%) and to support revenue forecasting (65%) and policy forecasting (51%), reflecting its growing role in informing both operational and strategic decision-making. In addition, just over 55% of administrations use AI as part of their big data analysis, highlighting the increasing integration of advanced analytical techniques into tax administration practices.
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands.
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
Azerbaijan – TaxesBI as an advanced reporting tool
The STS introduced TaxesBI an advanced reporting tool to strengthen data analysis, reporting, and decision-making. The system generates both simple and complex reports based on data stored in tax information systems, providing users with flexible access to structured and analysable data.
Electronic invoices submitted and received by taxpayers are processed using AI. Neural network models automatically identify whether an entry represents a good or a service, and classify goods into 50 predefined categories. An AI-based text processing system assigns master categories and subcategories, based on product descriptions, ensuring standardisation of inconsistent naming, improved data quality, structured analytical usability, and reduced manual intervention. The system also detects unidentified or improperly described product names recorded in cash receipts and invoices, allowing for further compliance review.
TaxesBI enables users to generate:
Simple analytical reports - structured data presented through user-friendly dashboards.
Complex AI-assisted reports - incorporating preliminary AI-driven analysis to detect risky transactions, mismatches between purchases and sales, daily sales without corresponding acquisitions, and potential anomalies in turnover patterns.
These reports support risk-based tax oversight and proactive compliance monitoring.
Beyond traditional reporting, TaxesBI incorporates behavioural and anomaly detection algorithms applied to cash register data, enabling detection of anomalous activity, activity type inference, and identification of unclassified poduct entries.
A key analytical feature of TaxesBI is turnover behaviour modelling based on seasonal patterns and peer comparison. Analytical models also detect taxpayers who may artificially adjust turnover levels to remain below VAT registration thresholds, with stabilisation patterns around regulatory limits automatically identified and assessed.
By combining structured business intelligence reporting with AI and behavioural analytics, TaxesBI strengthens analytical capacity within tax administration, enhances automated risk detection, improves data consistency and transparency, enables sectoral and behavioural benchmarking, and supports evidence-based decision-making.
CIAT – The “Electronic Invoicing Anomaly Detector”
Within the framework of its Advanced Analytics Center, the Inter-American Center of Tax Administrations (CIAT) developed the Electronic Invoicing Anomaly Detector as a collaborative initiative involving seven member jurisdictions, with technical support from a private sector company. This solution, made available as an open-source tool at no cost to tax administrations, has been implemented in jurisdictions such as Costa Rica and Guatemala. It integrates advanced AI technologies based on unsupervised algorithms for the analysis of electronic invoicing data.
The module is flexible and adaptable to different legal frameworks and institutional contexts. It is designed to process large volumes of electronic invoicing data, with a recommended minimum dataset of one million records to ensure reliable pattern detection. Using unsupervised machine learning algorithms, the system identifies atypical behaviours within the data, such as non-existent or simulated transactions, irregular invoicing volumes, and other patterns that fall outside expected ranges.
The technological architecture is built for distributed processing in cloud environments, with data stored in a format that optimises efficiency and scalability. Processing runs are executed simultaneously in the cloud, and results can be visualised through dedicated data visualisation tools.
As an open-source solution, it does not require licensing processes or procurement contracts, which facilitates adoption, customisation, and continuous improvement by tax administrations. This development represents a concrete application of advanced analytics supported by AI technologies, contributing to the digital transformation of tax administrations and to more effective risk analysis in electronic invoicing systems.
Malta: Use of an advanced analytics solution for compliance risk management
The MTCA sought to enhance the effectiveness of its compliance risk management processes after identifying data quality challenges that hindered timely and consistent detection outcomes. These issues underscore the need for a more coherent approach to data governance and for strengthening analytical capabilities in support of MTCA’s wider digital transformation objectives.
To address this, MTCA launched an initiative to implement an advanced analytics solution supplied and supported by a third-party provider, designed to reinforce and modernise the administration’s risk management framework. This initiative included establishing a structured data governance and data quality framework to support more reliable information flows across tax types, strengthened through systematic data exploration and quality checks progressing within project streams. MTCA also initiated the development of enhanced analytical components such as segmentation, forecasting and improved rule-based detection, to generate deeper behavioural insights and better target compliance risks. These efforts required close collaboration with the Malta Information Technology Agency, the public entity responsible for providing ICT infrastructure, systems and digital services to the government, ensuring the availability of data and technical environments essential for implementation.
The initiative has strengthened MTCA’s analytical foundation and is supporting a more modern and proactive compliance model aligned with international developments. It has also fostered stronger cross-departmental collaboration and a growing culture of shared data ownership within MTCA. As implementation continues, the solution is enabling more structured, timely and reliable compliance interventions, laying the groundwork for a future where tax processes operate more seamlessly within a connected digital ecosystem.
Sources: Information provided by Azerbaijan (2026), CIAT (2026) and Malta (2026).
Understanding the importance of the use of analytics, the OECD’s Forum on Tax Administration (FTA) developed the Analytics Maturity Model (OECD, 2022[6]) to help tax administrations self-assess their current level of maturity in their analytics usage and capability. The model, which is available in English, French and Spanish, provides insight into tax administration’s current status by identifying areas of weaknesses as well as strengths. As Figure 4.3. shows, it has been completed by over 40 tax administrations, and the results of this are guiding and supporting administrations in their analytics strategies.
Source: OECD (2022), Analytics Maturity Model, https://www.oecd.org/content/dam/oecd/en/topics/policy-issues/tax-administration/analytics-maturity-model.pdf (accessed on 15 June 2026).
Given the growing importance of data in tax administration, and the need to keep pace with rapid technological change, tax administrations are increasingly exploring new and innovative approaches to how data are stored, managed and used. These approaches aim to enhance analytical capabilities, improve operational efficiency, and support more flexible and scalable data management practices.
Table 4.12. illustrates a range of innovative techniques, with Network analysis being the most widely reported approach, used by 56% of administrations. This is followed by cloud storage and machine learning, each reported by slightly over 45% of administrations.
Across the regions, North, South and West Europe show the highest adoption of advanced data‑management approaches overall, followed by Central and West Asia and Latin America and the Caribbean.
Percentage of administrations with the respective process in place by region
Note: AFR – Africa, AS-CW – Central and West Asia, AS-ES – East and South Asia, EU-CE – Central and East Europe, EU-NSW – North, South and West Europe, LAC – Latin America and the Caribbean, PAC – Pacific Islands.
Source: OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
The E-Invoice Integration Service Platform leverages a sophisticated hybrid cloud infrastructure - combining public cloud, private cloud, and edge devices such as smartphones and point-of-sale (POS) systems - to facilitate a paperless invoicing ecosystem. By enabling merchants to issue digital invoices and allowing consumers to store records on mobile carriers, the platform establishes a high-efficiency, low-carbon computing model.
With an average volume of 10 billion e-invoices annually, the platform utilises a containerised architecture to maintain high scalability and cost-effectiveness. This hybrid approach integrates private and public cloud resources, allowing for the dynamic allocation of computing and storage. Consequently, the system can seamlessly adjust to peak traffic demands, ensuring the stability of critical digital services.
From a technical perspective, the platform employs a microservices architecture, decomposing applications based on specific business attributes. By packaging these services into containers, the system achieves rapid deployment and consistent performance across both primary private data centres and the public cloud. This allows for the adaptive distribution of workloads - such as public inquiries and high-volume invoice uploads - based on real-time demand, significantly enhancing system resilience.
Furthermore, the platform's public cloud components operate on data centres powered by renewable energy, directly supporting ESG (Environmental, Social, and Governance) sustainability goals. This transition to a digital, resilient infrastructure is estimated to reduce carbon emissions by at least 1.3 million tons annually, providing a robust and sustainable model for modern smart government services.
Source: Information provided by Chinese Taipei (2026).
References
[3] OECD (2025), Tax Administration 2025: Comparative Information on OECD and other Advanced and Emerging Economies, OECD Publishing, Paris, https://doi.org/10.1787/cc015ce8-en.
[6] OECD (2022), Analytics Maturity Model, OECD, Paris, https://www.oecd.org/content/dam/oecd/en/topics/policy-issues/tax-administration/analytics-maturity-model.pdf (accessed on 12 February 2025).
[2] OECD (2022), Tax Administration 3.0 and Connecting with Natural Systems: Initial Findings, OECD Publishing, Paris, https://doi.org/10.1787/53b8dade-en.
[7] OECD (2022), Tax Administration 3.0 and Electronic Invoicing: Initial Findings, OECD Publishing, Paris, https://doi.org/10.1787/2ffc88ed-en.
[1] OECD (2020), Tax Administration 3.0: The Digital Transformation of Tax Administration, OECD Publishing, Paris, https://doi.org/10.1787/ca274cc5-en.
[4] OECD (2017), Technology Tools to Tackle Tax Evasion and Tax Fraud, OECD Publishing, Paris, https://doi.org/10.1787/g2g77afa-en.
[5] OECD et al. (2025), Inventory of Tax Technology Initiatives, https://www.oecd.org/content/oecd/en/data/datasets/inventory-of-tax-technology-initiatives.html (accessed on 15 June 2026).
← 1. The OECD report Tax Administration 3.0 and Electronic Invoicing: Initial Findings (OECD, 2022[7]) contains information on electronic invoicing systems and some considerations that administrations exploring possible implementation or reform of such systems may wish to take into account.