This subject of this research is to address how Digital Document Management forms the basis of modern business practices within the Tax Administration. The introduction of a digital document management system is described in detail for the Tax Administration, which in essence enables private citizens, and business enterprises alike, to communicate with the public administration sector by making use of digital documents, as an alternative to hardcopy documentation. In addition to the afore-mentioned, the advantages of digital office operations are clearly outlined. Furthermore, the system enabling management, exchange and storage of digital documentation is described in detail. Digital Document Management (DDM) in the Tax Administration saw its beginnings as an initiative at the end of 2018, when the Croatian Tax Administration’s IT Software Development Technical Assistance Project was completed. The mentioned Project was financed with funds from the Transition Facility (TF-TA | „Transition Facility – Tax Administration“). For the Tax Administration, the mentioned project represented a major transformation tool that enabled the modernization of office administration because the EUP, as a document management system, or DMS, in IT terms is a software aggregate that enabled the storage of digital documentation, and/or scanned hardcopy documents, as well as the tracking documentation through its life cycle, which was literally impossible until now. In addition to the afore-mentioned advantages, the system enables the following: template-based document creation, simplified search functionality allowing for quick access to cases, written records and associated documentation in accordance with user access rights to the system, enhanced collaboration on matters regarding written records and cases, access to the workload and productivity of tax officials, access to a multitude of reports and statistics.