Using Large Language Models and Retrieval-Augmented Generation for Automatic Evaluation of Value-Added Tax Cases in Austrian Tax Law
Sprache des Vortragstitels:
Englisch
Original Tagungtitel:
Invited Talk at Brigham Young University, Marriott School of Business
Sprache des Tagungstitel:
Englisch
Original Kurzfassung:
This talk explores the application of large language models (LLMs) and retrieval-augmented generation (RAG) systems in creating AI-based assistants for value-added tax (VAT) law consulting. Focusing on Austrian and EU tax law, the study aims to investigate the potential of LLMs as a legal reasoning tool for the automation of the identification of the country where VAT has to be levied in cross-border transactions. Experiments using a compiled dataset of textbook cases achieved over 70% accuracy in identifying the country of supply of goods or provisioning of services, with over 80% of the justifications deemed correct or at least partially correct by an expert evaluation. Despite these promising results, challenges remain, particularly in document retrieval and handling complex cases. The paper contributes a prototype RAG system, a curated case set, and insights into the reliability of LLMs for legal reasoning in VAT law. Keywords: Artificial intelligence, retrieval-augmented generation, value-added tax management, taxation rights, LLM-based juridical reasoning, design science research
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