The Dutch VAT computer system, used by the Dutch tax authorities for over forty years, faces challenges due to age and technical flaws. Manual data entry of VAT declarations causes inefficiency and frustration. The outdated system handles nine million declarations, generating over 78 billion euros annually. A McKinsey report reveals the system’s extent of issues, estimating a replacement cost of 200 million euros.
McKinsey doubts meeting the deadline and questions the Tax and Customs Administration’s capability. The consultants describe the system as complex, fragile, and highly inefficient with technological limitations. Efforts to address the issues have been slow, hindered by political crises. The situation is further complicated by outdated IT infrastructure, staffing shortages, and organizational instability. The consultants stress the need for adaptation to a purchased system, but skepticism exists within the organization. Past attempts at IT modernization have faced difficulties. The replacement process is compared to complex surgery, requiring careful planning and execution.
Source: NRC (in Dutch)
