Exploring the Role of AI in Improving VAT Reporting Quality: Experimental Study in Emerging Markets

Moustafa Al Najjar (), Rasha Mahboub, Bilal Nakhal and Mohamed Gaber Ghanem
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Moustafa Al Najjar: Accounting Department, Beirut Arab University, Beirut 1105, Lebanon
Rasha Mahboub: Accounting Department, Beirut Arab University, Beirut 1105, Lebanon
Bilal Nakhal: Mathematics and Computer Science Department, Beirut Arab University, Beirut 1105, Lebanon
Mohamed Gaber Ghanem: Accounting Department, Beirut Arab University, Beirut 1105, Lebanon

JRFM, 2024, vol. 17, issue 11, 1-13

Abstract: In recent years, artificial intelligence has increasingly been interesting for its role in improving accounting practices. This research investigates whether there is a significant difference in value-added tax (VAT) reporting quality between traditional methods and those assisted by artificial intelligence (AI) in emerging markets. The experiment introduces an AI intervention using ChatGPT-4 to analyze data for accounting errors. The results demonstrate that AI-assisted reporting significantly improves reporting quality, as the AI effectively identified accounting errors that were missed in traditional reporting. This study makes a valuable contribution by providing novel, practical insights into the role and capabilities of AI in tax reporting, employing a rarely used experimental methodology to explore this topic.

Keywords: artificial intelligence; accounting errors; value-added tax; tax reporting quality; ChatGPT (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
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