Digitalization of tax administrations in European Union: a multi-criteria analysis of digital performance and cross-country disparities

This study assesses the level of digitalization of tax administrations in the 27 Member States of the European Union, applying the PROMETHEE II outranking method to 16 evaluation criteria. Denmark and the Netherlands rank highest. The leading performers share a common profile: they have integrated advanced digital technologies, strengthened their technological infrastructure and developed integrated digital services, drawing on artificial intelligence, process automation, cloud computing, blockchain and interoperable information systems. The analysis also reveals marked differences among Member States, reflecting a complex mix of economic, institutional and technological conditions, including the availability of financial resources, government stability, the maturity of digital culture and the current state of information systems. The GAIA analysis identifies Robotic Process Automation (RPA) as the criterion most closely aligned with the overall ranking, while artificial intelligence and virtual assistants contribute positively, though more weakly, to the differentiation among tax administrations. Overall, the results confirm PROMETHEE II as a reliable tool for monitoring comparative digital maturity and as a useful decision-support framework for a coherent and sustainable digital transformation of tax administrations across the European Union.