- South Africa is moving towards VAT Modernisation with the release of the 2025 Draft Taxation and Tax Administration Amendment Bills.
- The amendments establish the foundation for real-time VAT reporting and e-invoicing.
- New e-invoicing definitions are included to enable voluntary e-reporting.
- The changes aim to simplify compliance, reduce errors and fraud, increase transparency, and strengthen the tax ecosystem.
- The exact regulatory framework for VAT Modernisation is not yet defined, but a decentralised clearance model with continuous transaction controls is likely.
- Countries like Mexico, Peru, and Chile use similar models, showing improved compliance and reduced fraud.
- Businesses need to digitise invoicing and VAT processes for real-time data exchange with SARS.
- The transition will require adjustments, with a focus on data accuracy and digital readiness.
- Early preparation will help businesses transition smoothly and find efficiencies.
- The full implementation is targeted for 2028, but changes are already underway.
- Businesses should assess current systems, improve data quality, and explore e-invoicing solutions.
Source: vatmodernisation.co.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
