VAT and Blockchain

6 December 2019

Dr Aleksandra Bal

What VAT problems would blockchain solve?

Reliable documentation

Supply chain visibility (chain transactions)

Fraud prevention

Real-time data collection

Information deficits (liability of uninformed taxable person) Blockchain =

immutable transparent distributed

ledger

Prerequisites to blockchain adoption

Breakthrough innovations do not occur in isolation…..

Innovation Ecosystem

Complementary products are needed to achieve market success…..

E-identity

E-invoicing

Regulatory environment

Ecosystem leadership

Tokenized fiat currencies

Challenges to blockchain adoption (1)

Scalability

Interoperability

Tokenization (digital twin)

Common standards

Development and implementation costs

Another data structure?

The process of blockchain adoption will be

long and gradual…

Challenges to blockchain adoption (2)

Scalability

Security Decentra-

lization

The Blockchain Trilemma

Questions & Answers

6

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Dr Aleksandra Bal Senior Product Manager – Indirect Tax Reporting Aleksandra.bal@vertexinc.com

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