Artificial Intelligence and Big Data in VAT Enforcement of Colombia’s Digital Economy
DOI:
https://doi.org/10.21803/adgnosis.15.17.1129Keywords:
Artificial intelligence (AI), Big Data, Destination Principle, Digital economy, tax Compliance, Value Added Tax (VAT)Abstract
Introduction: This article analyzes the challenges that the digital economy presents for the implementation of the Value Added Tax (VAT) Destination Principle in the provision of cross-border services. While Colombia has adopted the OECD guidelines to ensure the proper taxation of these transactions, a significant discrepancy persists between the regulatory framework and the effective collection of VAT. Objective: The objective of this study is to analyze the nature and underlying causes of this gap. Methods: To this end, a qualitative documentary research design is adopted, grounded in a hermeneutic–legal approach that enables a critical interpretation of the regulatory framework and its practical operability. Results and Discussion: The findings reveal that this gap does not primarily stem from regulatory deficiencies but rather from institutional limitations, which is consistent with North’s perspective on transaction costs and institutional performance. In particular, the National Tax and Customs Directorate (DIAN) faces monitoring and enforcement costs that are incompatible with the scale and speed of digital transactions when operating under an analog-based framework. Conclusions: The study concludes that the incorporation of artificial intelligence (AI) and Big Data tools constitutes the most viable pathway to reduce such costs, operationalize the Destination Principle, and effectively close the VAT compliance gap in cross-border digital services.
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