Tax professionals expect the South African Revenue Service (Sars) to release the full framework for VAT e-invoicing later this year. The South African Institute of Taxation (SAIT) believes it will mark a significant step in Sars’ VAT modernisation initiative, the phased rollout of which it expects to begin this year, with full operational capability targeted for 2028. “To ensure a seamless transition, the initiative will entail close collaboration and comprehensive stakeholder engagement over the next five years.
Further detailed information will be shared during the planned consultations dedicated to this purpose.” The e-invoicing framework was first referenced in the 2023 draft proposals. SAIT said in a statement that the release of the full framework would mark “a significant step in Sars’ broader modernisation agenda, which is rapidly shifting South Africa’s tax environment toward real-time data transmission, automation and increased transparency”. SAIT acting deputy CEO Keitumetse Sesana said the VAT modernisation programme offers the potential for a more predictable, efficient compliance environment but will also place a big responsibility on businesses to ensure systems, data and processes are prepared for the new level of transparency.
For many businesses this means fewer documentation requests, faster verification cycles and improved refund turnaround times. Compliance will naturally embed itself into daily operations, rather than remaining an isolated monthly task. She said under the new system Sars would gain earlier, richer and more accurate visibility of business activity, long before VAT returns are formally submitted. “Digitally structured invoices, validated VAT numbers and automated data flows will allow VAT information to be transmitted directly from accounting systems into Sars in near real time.
Read Full Article on Business Day
