<p>All over the world, public sector organizations are coming up with new ways to leverage technical developments in large-scale data storage, artificial intelligence and other digital technologies. A substantial body of literature has covered the risks that digitalization can create to individuals in citizen-state interactions, but considerably less attention has been dedicated to the systemic effects of digitalization. This article contributes to the latter discussion by showing how digitalization means that digital sovereignty considerations are no longer confined to specific policy domains but become a cross-cutting concern for administrations. Focusing on the example of digitalization in tax administrations, the article shows that concerns such as cybersecurity vulnerabilities, foreign political pressure over providers in the technology supply chains supporting digitalization, and lack of relevant expertise affect not only everyday administrative tasks but the administration’s capability to discharge core functions of sovereign states. Finally, the article considers how the impact of digitalization on traditional sovereign prerogatives should affect the design and procurement of digital technologies, as well as the conceptualization of the various facets of sovereignty in the digital age.</p>