Proposed Architecture of Integrate Blockchain With VAT System in Oman
Myrna Mohamad, Khoula Al Harthy · 2022 International Conference on Electrical, Computer and Energy Technologies (ICECET) · 2022
VAT system was implemented in April of the year 2021. The VAT in Oman provides for the payment of 5% of the value of the commodity as an added tax. Oman will face a few difficulty after establishing the VAT system such as tax evasion, manipulating the value of the tax owed and organization uses fake tax numbers. Moreover, gather all companies and institutions in one system consider a challenge in term of fraud management. This research propose an architecture of integrating Blockchain with the VAT system in Oman to ensure secure VAT system transaction. Analysis of the financial transaction. Blockchain is a technology that transfers information peer to peer connection. This information is encrypted and secure and no one in between can view it. Blockchain is used to transfer certain digital information in the form of blocks, and this block is linked in the form of a chain Moreover, to evaluate the current issues and challenges in integrating VAT system with blockchain. Thus, the best solution to monitor tax collection is to link the VAT system to blockchain technology. It ensures that the correct accounting information and invoice numbers are transferred.