This presentation explains how AI technology can help cross-border EC businesses prepare for tax audits.
Current Status of Cross-border EC and Tax Investigations
Cross-border e-commerce (EC), the sale of goods and services across borders, has grown rapidly in recent years. With this growth, however, tax audits have become increasingly important. Tax authorities in various countries are taking a strict look at cross-border transactions, and proper tax reporting and payment of taxes are required.
The complexity of tax audits arises from differences in international tax laws and regulations. Therefore, advance tax registration and proper tax administration are essential. However, it is very time-consuming to perform these tasks manually.
What is the basic role of AI?
AI (artificial intelligence) is a technology that mimics human intelligence through data analysis, pattern recognition, and machine learning. This makes it possible to process large amounts of data quickly and accurately.
AI is used in a variety of fields, including natural language processing, image recognition, and predictive analytics. In cross-border e-commerce, it is also useful in a wide range of applications, such as tax management and improved customer service.
Specific examples of AI applications in tax audits
AI can simplify tax registration and tax reporting in advance of tax audits. For example, AI can automatically research tax laws and regulations in each country and suggest appropriate tax rates and filing procedures.
AI can also monitor transaction data in real time to detect outliers and signs of fraud. This enables early detection of tax risks and prompt response.
Advantages of AI-based Tax Management
The use of AI dramatically improves the efficiency of tax management. It is expected to reduce the number of manual errors and drastically shorten work time.
Furthermore, AI is always up-to-date with the latest tax laws and regulations, making it easier to ensure legal compliance. This minimizes tax risks.
AI's Role and Prospects in the Future Cross-border EC Market
As the cross-border EC market is expected to continue to expand, AI will play an increasingly important role. In particular, AI will be increasingly used in a wide range of areas, including tax management, customer service, and inventory control.
As AI technology evolves, cross-border EC businesses will be able to conduct their operations even more efficiently and effectively. This is expected to enhance competitiveness and sustainable growth.
