Adapting taxation to a changing digital landscape

Within the framework of the Network of Tax Organisations (NTO), the West African Tax Administrations Forum (WATAF) organised the two-day virtual workshop Digital Economy and Emerging Taxes: Adapting Taxation to the New Economic Landscape, together with the Centro Interamericano de Administraciones Tributarias (CIAT), both members of the global Network. More than 160 participants took part in the online sessions that unfolded on 11 and 12 November, including tax officials from Africa, the Americas, Europe and Asia.

The digital economy has become a permanent part of economic activity, and tax administrations can no longer remain passive. Speakers explored several challenges, including the difficulty of measuring revenue losses linked to digital activities, designing digital services taxes, and identifying policy approaches that are realistic and suitable for developing countries. Participants also discussed the increasing relevance of crypto-asset markets and the new policy and administrative demands they create. 

While countries have different policy options, the most suitable approach depends on national context, administrative capacity, and international commitments.

Across the workshop, speakers stressed that effective digital taxation requires not only legislative updates but also strong capacity building. Regional cooperation through tax organisations and regional bodies was highlighted as a way to increase bargaining power and support shared learning.

One session focused on the use of artificial intelligence in compliance and risk analysis. Panellists noted that AI tools can strengthen tax administration, but their use raises challenges related to data protection, taxpayer rights, skills gaps, implementation costs, and outdated regulatory frameworks. Ensuring clear regulation from the outset was identified as key to successful adoption.

The workshop also included a session on cross-border collaboration, with contributions from the Economic Community of West African States (ECOWAS), CIAT, Benin, Nigeria, and other administrations. CIAT presented its cooperation model for addressing digital taxation challenges, along with the services it provides to support tax administrations. Benin shared its experience with e-invoicing and how it is helping to increase revenue, while other panellists highlighted opportunities for regional mechanisms to strengthen cooperation and knowledge sharing in digital taxation.

The two-day workshop concluded with remarks from Jules Tapsoba, Executive Secretary of WATAF, and Dr. Esther A.P. Koisin, Executive Secretary of CATA and Chair of the NTO Council, who emphasised the value of continued knowledge exchange and coordination in adapting tax systems and tax administrations to the rapidly evolving digital economy.

“Navigating the digital tax landscape: e-commerce, sharing platforms, and trade in crypto assets” was the theme of the 3rd NTO Technical Conference, which inspired this two-day virtual workshop. For a deeper dive into the topic, the Conference report is available.