Dutch Tax Authority hands US software company control over VAT system

"With 1.5 billion euros per week in VAT revenue at stake, there are now serious concerns about digital sovereignty. If that revenue of €1.5B a week disappears, the state will have to quickly borrow more on the international capital market. In theory, America could stop this process in the Netherlands thanks to a new tender."

"FAST will also supply the servers, manage the software, and provide maintenance. And all of this will be done remotely, from the US. With BTW being the local term for VAT, Hubert calls the current situation "BTW-as-a-service" due to the lack of control."

"The "turnkey solution" as described in the tender includes equipment, system software, configuration, maintenance, and management. The new solution will also have access to 20 to 25 other applications within the Tax and Customs Administration. It is unclear exactly which ones these are; they could be purchased systems or locally developed applications."

The Dutch Tax Authority awarded a €190 million contract to American company FAST Enterprises for VAT system renewal, creating significant digital sovereignty concerns. FAST supplies not only software but also servers, management, and maintenance entirely from the US. This complete outsourcing arrangement, termed "BTW-as-a-service," grants FAST access to 20-25 other Tax and Customs Administration applications. With €1.5 billion in weekly VAT revenue at stake, potential US interference could force the state into emergency international borrowing. The tender process, ongoing for years, predates current geopolitical tensions. While the Tax Authority claims independent operation within the Netherlands, concrete evidence of system autonomy remains unavailable. Alternative solutions like SAP's SAPTRM existed but were not selected.

Read at Techzine Global