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

Author

Listed:
  • 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
    Accounting Department, Alexandria University, Alexandria 21526, Egypt)

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.

Suggested Citation

  • Moustafa Al Najjar & Rasha Mahboub & Bilal Nakhal & Mohamed Gaber Ghanem, 2024. "Exploring the Role of AI in Improving VAT Reporting Quality: Experimental Study in Emerging Markets," JRFM, MDPI, vol. 17(11), pages 1-13, October.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:11:p:477-:d:1504343
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