FTAN – THE PATH TO AI-BASED FULL AUTOMATION OF TAX-RELEVANT TRANSACTION VALIDATION

 

FTAN – THE PATH TO AI-BASED FULL AUTOMATION OF TAX-RELEVANT TRANSACTION VALIDATION

📘 Report published and submitted to the German Federal Ministry of Finance (BMF)
Title: FTAN – The Path to AI-Based Full Automation of Tax-Relevant Transaction Validation

The report presents a scalable system for recording transactions exceeding €250 (purchases) or from €0.01 (sales), regardless of platform, industry, or payment method.
Key components:

• FTAN (Financial Transaction Authentication Number)

• Digital identity (incl. NFC & biometrics)

• Real-time submission to a central financial data authority

• Compatibility with Elster API, EUDI Wallet & future clearing systems

Objective: Fraud prevention, tax fairness, and data privacy through pseudonymization.

Outcome: A traceable system architecture that enables structure without surveillance.
Potential: At least €11–27 billion in additional annual tax revenues.
Impact: Up to 99% reduction in undeclared cash flows. VAT carousel fraud can be fully eliminated if applied at the EU level.

Applicable for: Every citizen, every company – for every financial transaction, in real time.

Due to the formal submission and positive feedback from the German Ministry of Finance, only selected parts of the original concept are publicly available in English.

DE Version here