Abstract: Value-added tax (VAT) fraud and the persistent tax gap represent a critical fiscal challenge for governments worldwide. The European Union's VAT compliance gap has been estimated at approximately EUR 89.3 billion, with the European Commission's 2023 assessment placing the figure closer to EUR 128 billion [1][2]. Blockchain-based smart contracts have emerged as a technically promising mechanism for automating VAT determination, invoice authentication, and real-time remittance, offering immutability, programmable logic, and distributed auditability as inherent properties. This paper provides a comprehensive review of the architecture...
Keywords: blockchain; smart contracts; VAT compliance; e-invoicing; oracle problem; Hyperledger Fabric; ViDA; tax gap; permissioned ledger; digital tax administration
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