Digital Transformation of Taxation and Customs System: International Experience and Prospects for Ukraine

Abstract

The article is devoted to the study of digital transformation processes in the tax and customs system as a key direction in the modernization of fiscal administration. The main technological solutions used to enhance the efficiency of tax and customs administration are identified and categorized into technologies of the Third Industrial Revolution (digitization) and the Fourth Industrial Revolution (actual digital transformation). The study aims to examine the global experience of digital transformation in tax and customs systems, identify key technological solutions, and assess their economic efficiency to develop scientifically grounded recommendations for implementing innovative digital tools in Ukraine’s fiscal mechanisms. The key findings of the study demonstrate that digitalization contributes to the growth of tax and customs revenues, reduces tax evasion, and decreases administrative costs. The article distinguishes between simple digitization (the transition of existing processes into digital format) and digital transformation, characteristic of the Fourth Industrial Revolution, which is based on the implementation of artificial intelligence, machine learning, and big data analytics. An analysis of the digital development plans of the State Tax Service and the State Customs Service of Ukraine reveals that most projects focus on digitization rather than full-fledged digital transformation. In both institutions, the use of artificial intelligence technologies is primarily limited to basic automation functions. Despite Ukraine’s progress in developing digital infrastructure, state fiscal authorities face systemic challenges in the operation of electronic services and the quality of taxpayer services. The digital transformation of the tax and customs system should be integrated into the country’s overall economic development strategy, considering not only technological aspects but also institutional factors