Digital VAT is becoming an open kitchen
Modern restaurants put the kitchen in full view. Digital reporting does the same for VAT, and that changes the most important question.
Have you noticed how many modern restaurants put the kitchen in full view?
No wall. No curtain. You can watch dinner being prepared. That changes behaviour: there is less room to hide chaos behind the door.
VAT is slowly moving in the same direction.
From explaining afterwards to visible upfront
Historically, companies could transact all month and explain the result afterwards. Returns were prepared, reconciliations performed, adjustments made. Then someone submitted the final number.
Digital reporting changes the sequence. Transaction data becomes visible earlier, sometimes much earlier. And that changes the most important question from "Can we prepare the return?" to "Would we be comfortable if someone looked at this transaction right now?"
The upside
That sounds more demanding. But clean processes, good master data and reconciliation all become more valuable.
Transparency is only uncomfortable when different systems tell different stories.
Originally published on the itax4apps LinkedIn page on 6 October 2026.