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Economics Letters Template
  • japhet chiradza
japhet chiradza
Yokohama National University
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Abstract

It is generally agreed that technology has phenomenally changed the way the world economies and societies operates. The advent of the internet, its associated technologies, giant leaps in computing power and network speed on the hardware side and development of artificial intelligence software has propelled the world into a digital and virtual world. Disruptive technologies such as internet and the development of Blockchain has been a major highlight in the business and administrative communities owing to its ability to manage records de-centrally while at the same time creating an indelible that for audit purposes. This reduced human intervention in many structured processes such as transaction processing, statutory amounts computations, business records and public records. This paper looks at the Blockchain technology architecture and how its strong points can be adopted for management and administration of VAT in Zimbabwe. The paper used a comparative analysis approach and scenario building to investigate the applicability of Blockchain technology based VAT administration. Findings from the study reveal possible gains in the form of reduced compliance costs, reduced room for fraud from both officers and clients and finally significant reductions in VAT refund processing time frames allowing for earlier refund payments to taxpayers. The findings actually points to innumerable gains which would in theory revolutionalize how tax is collected, not only in Zimbabwe but world over.