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South Africa VAT digital reporting & e-invoicing

SARS considers e-invoicing / digital VAT transaction reporting with pre-filled returns

The South African Revenue Service (SARS) is expected to shortly conclude on its plans to implement e-invoicing and digital reporting. This is likely to be based on a PEPPOL framework.

In September 2023, SARS launched a public consultation on modernising its VAT regime. This includes moving to real-time transaction report which will help offer taxpayers pre-filled VAT returns. The aims include making compliance easier, fraud harder and lowering the compliance costs for taxpayers and SARS.

Real-time VAT transaction reporting

SARS has been studying similar initiatives in: Italy; Chile; India; Uganda; the EU; and the UK. It has looked at the various models for digital and e-invoice reporting, and whether to adopt: Continuous Transaction Control pre-approval models; central or dispersed models; whether to base reporting on mandatory e-invoicing (like Italy) or post-invoice digital reporting (like Spain). It has also studied the scope – B2G, B2B and B2C – as well has issues such as phased implementation and thresholds.

In commencing the consultation process, all affected stakeholders, such as businesses or vendors, accounting system software developers or suppliers, technology entities, recognised controlling bodies, and the public are invited to submit contributions and comments on –

  1. a) the formulation of the VAT data models;
  2. b) the digital transmission of VAT data (data that is typically used to compile and report on a VAT return to SARS and technology; and
  3. c) the formulation of a modern VAT return with disaggregated and new data disclosure fields.

Middle East & Africa e-invoicing


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