Boston University School of Law

DICE -- Digital Invoice Customs Exchange

Richard T. Ainsworth
Boston University School of Law

Goran Todorov
Consultant


Boston University School of Law Working Paper 13-40
(August 22, 2013)

Abstract

A digital invoice customs exchange (DICE) is a technology-intensive tax compliance regimen for VAT/GST that utilizes invoice encryption to safeguard transactional data exchanged between seller and buyer in both domestic and import/export contexts while simultaneously notifying concerned jurisdictions of the transaction details. 

DICE facilitates real-time VAT/GST enforcement as well as real-time commercial contract verification.  It is a commercial invoice validation system that prevents tax evasion, most notably missing trader fraud and the non-declared import of tradable services.  DICE mimics the most effective administrative enforcement effort ever undertaken by the US IRS – the requirement to disclose the social security numbers of dependents on returns.  Tax enforcement is simplified and streamlined when fraudsters know they are (or they are convinced that they could be) being watched – in real-time detail. 

DICE is an emerging compliance solution that has been adopted in part by some jurisdictions, but (as of this writing) has not been adopted in full by any jurisdiction. 

There are two elements to DICE – the digital invoice and the customs exchange.    This paper presents the both elements and indicates where early successes have been recorded in implementation.  

 

 

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Richard T. Ainsworth Contact Information
Email: vatprof@bu.edu
LL.M. Tax Program
Boston University School of Law
765 Commonwealth Ave
Boston, MA 02215
Phone: (781) 773-1052

Goran Todorov
Consultant
Email: todorov011@hotmail.com
Goran Todorov is a global consultant for legal and technical certification of invoicing systems, advising on implementation and certification of sales data controller systems. He is currently on special assignment in Rwanda in charge of overall management of a Certified Invoicing System for the Rwanda Revenue Authority.

 

This draft can be also found at the link below:

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