Potential SARS 5-corner Peppol e-invoicing & e-reporting
The South African Revenue Service (SARS) may move for a further debate on VAT modernisation, including B2B e-invoicing between businesses and e-reporting to the tax authorities. This follows a 2023 consultation where SARS consulted on offering pre-filled VAT returns based on e-reporting data. Any launch could possibly be 2028 or later
Peppol-based 5-corner real-time VAT transaction reporting
SARS may select a 5-corner Peppol-based model (see below example), which is emerging as the preferred Continuous Transaction Control model. France will introduce its version from 2026, and Belgium has a phased 2026 to 2028 launch plan.
SARS has been studying similar initiatives in: Italy; Chile; India; Uganda; the EU ViDA; 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 –
- the formulation of the VAT data models;
- the digital transmission of VAT data (data that is typically used to compile and report on a VAT return to SARS and technology; and
- the formulation of a modern VAT return with disaggregated and new data disclosure fields.
