Digital Transformation and Its Impact on Public Services: The Case of the Tax Administration Services

Abstract

Digital transformation is changing the way governments deliver public services by enabling greater efficiency, transparency, and easier citizen access. This process improves the quality and speed of services, reduces bureaucracy by compelling public administration to comply with legal deadlines, and decreases opportunities for corruption. Tax administration is a key sector where digital tools significantly reduce bureaucracy and promote fiscal compliance. This paper aims to analyze the impact of digitalization on tax administration in Albania, focusing on improvements in service delivery, transparency, tax compliance, and the prevention of tax evasion and money laundering. Additionally, it examines the alignment of national legislation with EU and OECD standards. The research employs a qualitative approach based on document analysis. Legal texts, official institutional reports, and strategic frameworks were reviewed to evaluate the implementation and outcomes of digital reforms in tax administration. Digital platforms such as e-Albania and e-Filing have enhanced service accessibility, reduced informality, and strengthened institutional transparency. Reforms in fiscalization and inter-institutional data integration have contributed to increased compliance and real-time monitoring of financial flows. While digitalization has brought considerable benefits to tax governance in Albania, challenges remain, particularly in infrastructure, cybersecurity, digital skills, difficulties in access for the elderly and persons with disabilities, and adapting to technological developments. Continuous investment, inter-agency coordination, and inclusive access are essential to achieving a sustainable and trustworthy digital tax system.

Received: 20 April 2025 / Accepted: 8 June 2025 / Published: 25 June 2025