At a recent World Economic Forum, 800 leading executives were asked to identify a “tipping point” for when governments would collect tax using blockchain; 73% of respondents thought it would happen by 2025.
It could happen sooner. The cost of transferring digital information falls by half every 24 months; the cost of processing digital information falls by half every 18 months; and the cost of storing digital information falls by half every 12 months. Though the challenges of widespread adoption exist, the blockchain revolution is imminent.
Indeed, just as the internet has forever changed the way businesses operate, blockchain will do the same, especially for indirect tax. From facilitating trade to tracking it, from guarding against fraud to real-time reporting of VAT, and from regulatory compliance to electronic invoicing, blockchain will define technological developments over the next decade.
