The Effect of Electronic Data Interchange (EDI) on Improving Tax Compliance Rates

Abstract

Kosovo's tax administration plays a fundamental role in the state's functioning, carrying out many duties and obligations. In addition to these duties, TAK also acts as a stabilizing element for the macro-fiscal economy. In addition to the importance of human resources, the function of information technology is unquestionably crucial in achieving TAK's objectives. The implementation of information technology has resulted in the mechanization of several processes, simplifying the gathering of data and the distribution of tax responsibilities. Advanced information technology systems have improved communication channels with taxpayers and other individuals or groups involved, promoting increased transparency in tax information management. The adoption of the Electronic Data Exchange (EDI) application has resulted in advantages not just for TAK but also for taxpayers and the general public. There are several benefits to using TAK, such as increased efficiency in processing tax return data, less dependence on people specifically assigned to tax return processing, and a lower likelihood of errors in tax returns. The benefits for taxpayers and citizens include the convenience of filing and paying taxes, the option to do so online at any time, and the ability to access online services without the need for in-person engagement with tax authorities. Another vital part of TAK's employment of information technology is the facilitation of online declarations and payments, as well as digital connections with taxpayers. This progress has led to higher adherence to tax obligations and a decreased incidence of tax evasion.