2028 roadmap for Artificial Intelligence-powered VAT engines, e-invoicing validation, and real-time reporting
Mozambique has unveiled an ambitious tax transformation agenda that places artificial intelligence (AI) at the heart of its revenue strategy through 2028. Outlined in the government’s Medium-Term Fiscal Scenario (CFMP), approved in June 2024, the plan aims to modernise the country’s tax administration, boost compliance, and increase collections — particularly from large corporate taxpayers.
Read how other countries adopt VAT AI to simplify administration and grow revenues.
The roadmap includes major investments in digitisation, system interoperability, and advanced analytics, with a focus on using AI tools to automate and enhance tax operations. The tax authority is expected to deploy machine learning models for real-time transaction monitoring, enabling it to flag inconsistencies, detect anomalies, and identify non-compliant behaviour as it happens.
Robotics and natural language processing for VAT
As part of the initiative, Mozambique will also integrate forensic tax analytics and predictive auditing techniques. These VAT AI-powered tools will allow the tax authority to move from reactive, manual audits to proactive, risk-based targeting, using historical data patterns and behavioural models to forecast areas of non-compliance before revenue is lost.
The reforms will enable tax systems to leverage natural language processing (NLP) for automated document review and support, AI-driven fraud detection algorithms to identify suspicious networks and supply chain anomalies, and digital twin modelling to simulate the economic impact of tax changes.
Mozambique’s plan to adopt AI in tax is in line with global trends, where governments are increasingly turning to intelligent automation and data science to counter tax evasion, streamline compliance processes, and enhance transparency. Recent other successes include:
Using AI to Transform VAT in Mozambique
Mozambique has an opportunity to replicate global success stories by leveraging AI-powered technologies to enhance its VAT administration, collections, and fraud detection. With mounting pressure to improve tax efficiency and widen the VAT base, AI could become a transformative tool for the country’s revenue authority.
One of the most promising applications is automated invoice collection and processing. AI tools can seamlessly integrate with companies’ accounting, ERP, and invoicing systems to capture and process vast volumes of VAT-relevant data. This reduces human error and allows tax professionals to focus on strategic planning rather than manual data entry.
AI also enables real-time transaction monitoring, allowing tax authorities to flag high-risk VAT filings instantly. These tools can detect anomalies such as incorrect tax rates, unjustified exemptions, or cross-border misreporting. In a multilingual, fast-evolving environment like VAT, chatbots powered by generative AI can help taxpayers stay compliant across jurisdictions by offering instant answers about return deadlines, reporting formats, and local rules.
Predictive analytics is another valuable AI application. By analysing historical VAT returns, AI can forecast future liabilities and risks. This allows businesses to make better financial decisions and optimize their tax strategies.
Mozambique could also benefit from AI-driven AP (accounts payable) automation, which can handle millions of invoices annually—automatically identifying the correct VAT codes and increasing reclaim accuracy. Combined with custom VAT planning, AI can suggest supply chain or structuring changes that minimise irrecoverable VAT.
Finally, AI enhances audit readiness by retrieving transactional data, tax rulings, and public guidance to support a company’s position in case of scrutiny—lowering compliance risk and reducing administrative costs.
By embracing AI, Mozambique can build a smarter, fairer, and more efficient VAT system, boosting revenues while reducing burdens on compliant taxpayers.
