Modern economies face the challenge of how to ensure sustainable development with responsible use of resources and reduction of negative impact on the environment. In this context, the concept of “green projects” is gaining more and more importance - we are talking about projects that promote renewable energy sources, energy efficiency, emission reduction and circular economy. One of the key elements of the success of these projects is ensuring transparency in their financing and implementation. The role of the Tax Administration as a fiscal control body is becoming increasingly important, especially in the context of the digital transformation of public administration. Digital tools enable accurate tracking of tax credits, subsidies, cash flows and reporting activities within green initiatives. The paper analyzes the importance of the digital transformation of the Tax Administration of the Republic of Serbia in the context of improving transparency and efficiency in the monitoring and control of green projects. Digital tools such as eTaxes, eInvoice, electronic fiscalization and integrated information systems enable the automation of control, the monitoring of the expenditure of funds and the reduction of the risk of misuse. A special focus was placed on the role of the tax administration in the implementation of environmental policies through fiscal mechanisms and transparent reporting. Digital connection with other institutions and open data are key factors in the fight against corruption and the introduction of responsibility in the use of public funds. The aim of this paper is to investigate how the digital transformation of the Tax Administration contributes to greater transparency in the implementation and supervision of green projects in Serbia.