South Africa advances plans for digital VAT compliance and e invoicing
- South Africa is advancing towards a digital VAT compliance model as part of the South African Revenue Service’s (SARS) VAT Modernization programme, with e-invoicing set to play a pivotal role in future tax administration, despite a formal mandate not yet being enacted.
- SARS’s commitment to modernizing VAT administration was first expressed in its 2023 VAT Modernisation Discussion Paper and reinforced through various strategic documents, positioning structured e-invoicing as a key reform aimed at enhancing VAT visibility, reducing fraud, and improving revenue collection.
- The proposed future VAT compliance model will involve structured e-invoices and near real-time data transmission to SARS, shifting compliance monitoring from periodic returns to transaction-level controls, with phased implementation anticipated from 2028, pending formal legislation and technical guidance.
Source Pagero
- South Africa is implementing a multi-year, phased plan for nationwide e-invoicing and real-time VAT digital reporting.
- E-invoicing is central to SARS’s modernization strategy, aiming to strengthen revenue collection, reduce the VAT gap, and combat VAT fraud and non-compliance.
- The new system will transition from traditional VAT declarations to real-time, transaction-level data reporting, starting with the largest VAT contributors.
- The future model will use automated, secure digital channels and APIs for direct invoice data transmission, enabling automated compliance checks and potentially pre-populated VAT returns.
- These reforms are part of broader efforts to make SARS a highly digital, data-driven authority and improve tax administration efficiency.
Source: kpmg.com
Briefing document & Podcast: South Africa’s E-Invoicing and Real-Time Reporting Overhaul – VATupdate
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
- Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
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.
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