The Tax Authority has entrusted the entire management of its nascent VAT system to FAST Enterprises, an American enterprise. With a staggering weekly VAT revenue of 1.5 billion euros at risk, apprehensions regarding digital sovereignty are mounting.
Should this weekly revenue of €1.5 billion evaporate, the state may be compelled to urgently seek loans in the international capital markets.
Theoretically, the U.S. could impede this operation in the Netherlands through a new tender, as suggested by Dutch tech analyst Bert Hubert.
FAST Enterprises clinched a €190 million contract last year for revamping VAT processing. However, the tender documents reveal that the company’s role extends beyond mere software provision.
FAST will also supply servers, oversee software management, and offer maintenance—all from its base in the United States. Hubert characterizes the prevailing scenario as “VAT-as-a-service” due to the notable absence of control.
Complete Outsourcing
The “turnkey solution” outlined in the tender encompasses hardware, system software, configuration, maintenance, and management.
Additionally, the new system will interface with 20 to 25 other applications within the Tax and Customs Administration.
While the specific nature of these applications remains ambiguous, they may comprise both purchased solutions and locally developed applications (LOAs).
Given the protracted nature of the tendering process, it appears that the selection of an American IT provider occurred without consideration of the prevailing geopolitical tensions.
Criticism has proliferated from various stakeholders, including competitors in the tendering process.
Nonetheless, the Tax and Customs Administration claims to operate autonomously within the Netherlands, although tangible proof of this system’s complete independence is presently lacking.
An alternative solution, SAPTRM, presented by SAP and executed by Capgemini—well-acquainted with tax authorities—was on the table.
A 2022 report by McKinsey conducted a comparative analysis of the FAST Enterprises solution, although this document is now offline. Ultimately, FAST’s approach emerged victorious in that comparison.
The ICT Assessment Advisory Board has indicated that the preparatory phase for this transition was inadequate in April 2024.
They described management as overly lax, the rationale for the solution unclear, and the preparation for decision-making described as ‘insufficiently diligent’.
Following a lawsuit from Capgemini, the court ruled in March 2025 that the decision to award the contract to FAST was justified.
Solvinity 2.0?
The acquisition of Solvinity by the American entity Kyndryl ignited discussions about digital sovereignty earlier this year.
Given that Solvinity oversees the DigiD system for civil affairs on behalf of the government, reliance on Kyndryl, a former IBM subsidiary, poses substantial risk.
The extent of control exerted by Washington remains opaque, particularly as discussions about relocating the DigiD system loom.
In essence, the current engagement with FAST Enterprises mirrors the earlier controversy surrounding Solvinity. Despite the varying specifics, the essential issue of the government’s digital autonomy remains in jeopardy.
The voiced trepidations regarding decision-making processes and the lack of transparency regarding the Tax and Customs Administration’s controls render this matter profoundly contentious, a reality evident even as we approach 2026.
Source link: Techzine.eu.
