Fiscal Digitalisation in Eastern Europe: Between Compliance and Competitiveness

Abstract

The paper analyses the profound transformations generated by the adoption of digital technologies in the tax administration of Eastern European states, with a focus on economies such as Romania, Poland, Hungary and Bulgaria. In recent years, these states have become veritable “laboratories” for the testing and implementation of advanced fiscal digitalisation instruments, such as mandatory electronic invoicing, standardised SAF-T reporting, real-time transaction monitoring systems and the interconnection of tax databases. These developments reflect not only the tendency towards the modernisation of public administration, but also the need to increase the level of tax collection, reduce tax evasion and strengthen transparency in the relationship between the state and taxpayers.

The objective of the research is to highlight the manner in which fiscal digitalisation simultaneously influences tax compliance and the competitiveness of the business environment in Eastern European economies. The study seeks to capture the existing tension between the increased reporting, control and traceability requirements imposed on companies and the potential benefits generated by automation, operational efficiency, the reduction of administrative costs and the improvement of tax discipline. In this context, the paper examines whether the new digital systems function exclusively as instruments of supervision and compliance or whether they may also become factors stimulating economic competitiveness and the modernisation of the entrepreneurial environment.

From a methodological point of view, the research is based on a qualitative and comparative approach, grounded in the analysis of the institutional framework and the principal fiscal digitalisation mechanisms implemented in the selected states. The particular features of instruments such as e-Factura, the Standard Audit File for Tax (SAF-T), and real-time reporting or monitoring systems are investigated from the perspective of their impact on enterprises, especially with regard to compliance costs, the adaptation of digital infrastructure, the reorganisation of internal processes and the relationship with the tax authorities. The analysis highlights the fact that, although fiscal digitalisation may generate significant pressures on companies, especially in the initial phases of implementation, it also contributes to the standardisation of processes, the increase of tax predictability and the reduction of informational asymmetries.

The research findings suggest that fiscal digitalisation in Eastern Europe should not be interpreted exclusively as a technological mechanism of control, but rather as a strategic component of fiscal reform and economic transformation. In conclusion, the paper argues that the balance between compliance and competitiveness depends on the quality of institutional design, the pace of implementation, the administrative capacity of the state and the level of digital preparedness of the business environment. Thus, the success of fiscal digitalisation is conditioned not only by the technological performance of the systems, but also by their capacity to create a fiscal framework that is more efficient, more transparent and more conducive to economic development.