Conceptual model of the new blockchain technology-based VAT system

Nasiri Aghdam, Ali; Nazari Farsani, Mohsen; Nouri, Mahdi; Ghasemi Sheshdeh, Mohammad

doi:10.22034/es.2023.360788.1616

Conceptual model of the new blockchain technology-based VAT system

Document Type : Original Article

Authors

Ali Nasiri Aghdam ¹

Mohsen Nazari Farsani ²

Mahdi Nouri ³

Mohammad Ghasemi Sheshdeh ⁴

¹ Assistant Professor, Economics department,, Economics faculty, Allameh tabataba`i university. Tehran, Iran

² phd student, Economics department, Economics faculty, Allameh tabataba`i university. Tehran, Iran

³ Assistant Professor, Economics department, Economics faculty, Tehran university, Tehran, Iran

⁴ Assistant Professor, Economic Planning and Development department, Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran

10.22034/es.2023.360788.1616

Abstract

Distributed ledger, which in some texts is equivalent to blockchain technology, is one of the revolutionary technological advances of the last two decades. This technological advancement is predicted to bring about far-reaching changes. The functions of this technology do not focus on its basic topics, payment facilitation and finance, and the information stored is not necessarily money or currency, but may be another type of data.
The connection between this technology and VAT starts from the fact that this technology is mostly used in the field of transactions, and on the other hand, VAT is also a tax on transactions.
The present study has tried to arrange a VAT system based on blockchain technology. This research described the process of systematic verification of invoices in a distributed system in one phase and the VAT payment process through VATCoin in another phase. There are several significant advantages to a blockchain technology-based system over other architectures.

Keywords

distributed ledger

VATCoin

Blockchain

Value Added Tax

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