Value-Added Tax (VAT) systems are critical for corporate tax compliance but have become increasingly complex due to evolving regulations and the global nature of business. Traditional VAT Management Information Systems (VAT-MIS) often struggle to keep up with these demands, leading to inefficiencies, high compliance costs, and operational risks. This paper explores how open innovation, the practice of collaborating with external partners such as technology firms, startups, and academic institutions—can transform VAT-MIS by accelerating the adoption of cutting-edge technologies like blockchain, artificial intelligence (AI), and cloud computing. A conceptual model is proposed, outlining how open innovation can be leveraged to modernize VAT systems, enhance compliance, and improve operational efficiency. The model also addresses challenges such as intellectual property concerns, data security, and regulatory compliance, offering strategies for mitigating these risks. By adopting open innovation, companies can build scalable, cost-effective VAT systems that are better equipped to handle the complexities of a digital tax environment. This research contributes to the fields of VAT management and information systems, offering a practical framework for integrating technological innovations into corporate tax strategies.