Fiscal System Modernization in Latin America: Technological Challenges and Strategic Proposals for Venezuela in the Digital Age

Abstract

The digitalization of Tax Administrations (DTAs) in Latin America and the Caribbean (LAC) has transformed fiscal systems through institutional programs, the development of effective tax legal frameworks, and the adoption of advanced technological tools such as electronic invoicing, artificial intelligence (AI), data analysis, and cooperative compliance programs (CCPs). These advancements have enhanced transparency, efficiency, and revenue collection in countries such as Mexico, Peru, and Brazil. In contrast, Venezuela faces significant structural constraints—both regulatory and technological—that hinder the modernization of its tax system and its relationship with taxpayers. This study assesses the impact of technological developments on DTAs across the LAC region, identifies key obstacles, and proposes targeted strategies for the Venezuelan context. The findings underscore the need to strengthen the legal framework, build institutional capacities, and implement advanced technologies. These measures would improve tax planning, reduce operational costs, and foster voluntary tax compliance. A comprehensive approach would position Venezuela as a competitive tax model aligned with international standards, enhancing interaction between taxpayers and the tax administration.