Mozambique has announced an ambitious tax transformation strategy that places artificial intelligence at the center of its revenue collection efforts through 2028. The plan, detailed in the government’s Medium-Term Fiscal Scenario (CFMP) approved in June 2024, aims to modernize tax administration, improve compliance, and increase collections, especially from large corporate taxpayers.

AI-Powered Tax Transformation

The strategy focuses on deploying advanced AI tools to enhance efficiency in tax operations. Investments will be made in digitization, system interoperability, and predictive analytics. Machine learning models will enable real-time monitoring of transactions, flagging inconsistencies, detecting anomalies, and identifying non-compliance instantly.

Mozambique’s tax authority will also adopt robotics and natural language processing (NLP) to improve VAT operations, including automated document reviews and AI-driven fraud detection. These tools will support predictive auditing techniques, allowing authorities to proactively target high-risk cases based on historical data patterns rather than relying solely on manual audits.

Advanced Capabilities and Applications

The reforms will enable the use of:

Forensic tax analytics for identifying non-compliant behaviors
Digital twin simulations to evaluate the economic impact of tax policy changes
Generative AI chatbots to guide taxpayers on filing requirements, return deadlines, and reporting standards
Automated invoice collection and processing integrated with ERP and accounting systems

By capturing and analyzing vast volumes of VAT-relevant data, AI tools reduce human error and allow tax professionals to focus on strategic decision-making rather than manual processing.

Global Alignment and Opportunities

Mozambique’s AI-driven approach aligns with global trends where governments in Italy, Malta, and Vietnam have successfully implemented intelligent automation to counter tax evasion and streamline compliance processes.

Key benefits of the plan include:

Real-time detection of incorrect tax rates, unjustified exemptions, and cross-border misreporting
Predictive analytics to forecast VAT liabilities and assess risk exposure
Accounts payable (AP) automation to handle millions of invoices annually while improving reclaim accuracy
Lower compliance risks and reduced administrative costs through AI-supported audit readiness

Driving Tax Efficiency and Revenue Growth

Mozambique faces mounting pressure to improve VAT efficiency and expand its tax base. By embracing AI technologies, the country aims to strengthen revenue generation, reduce fraud, and create a smarter, fairer tax system.

With these reforms, Mozambique positions itself as a leader in adopting AI for governance in Africa, leveraging automation and data science to enhance transparency and modernize tax administration.