In Germany, tax returns are rapidly undergoing a digital transformation. According to ELSTER 2018, 23 million tax returns were submitted online last year, a new record for Europe's largest economy. Tax experts say electronic tax is becoming more popular because the margin for error is lower compared to filling in paper forms. Since 2005, German companies have been required to process their payroll tax and VAT returns electronically through the ELSTER system.
This chart shows the number of tax returns submitted electronically in Germany (millions).
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