South Africa’s VAT Modernisation programme sets out a phased reform agenda in which mandatory e-invoicing and near real-time VAT digital reporting form the core compliance pillars. The direction is reflected in SARS planning materials published between 2022 and 2025 and reinforced by stakeholder engagement summaries issued in February 2026.
Programme Status
South Africa is progressing toward a national e-invoicing and digital reporting framework. While a formal mandate is not yet enacted, recent stakeholder engagements and earlier draft proposals indicate that SARS is preparing a structured approach for invoice data submission and VAT monitoring.
SARS Publications Underpinning the Reform
The programme has been reiterated across multiple SARS strategy and planning documents, including:
- VAT Modernisation Discussion Paper (2023)
- SARS Modernisation Whitepaper 3.0 (2025/26–2029/30)
- SARS Annual Performance Plan 2025/26
- SARS Strategic Plan 2025/26–2029/30
- SARS Strategic Plan Mid-Term Progress Report 2020–2025
These publications position e-invoicing as a central component of future VAT administration.
Reform Objectives Stated in the Programme
The reform is presented as a structural shift designed to strengthen VAT administration and revenue outcomes. The referenced planning materials describe:
- increasing complexity in the tax environment, including illicit trade and broader compliance challenges;
- VAT fraud, refund abuse, and persistent non-compliance as ongoing risks;
- a need for stronger access to verifiable transaction data and more automated compliance monitoring.
Planned VAT Compliance Model
The planned VAT operating model is described as relying on structured invoice data transmitted from business systems to SARS on a real-time or near real-time basis. Early operation is described as starting with daily transmission, with shorter intervals possible as capability develops, and supported by a redesigned VAT return using richer transaction detail and automated cross-checks. Longer-term direction includes increased automation of VAT outcomes enabled by invoice-level data.
Data Transmission Options
The programme references multiple technical routes for submitting invoice data, including:
- secure batch channels such as SFTP,
- API-based options designed to support cloud ERP environments,
- SME accounting tools.
Phasing and Indicative Timeframe
Implementation is described as phased, with timing linked to consultation and readiness. The multi-year plan indicates:
- system design and pilot engagement through 2026;
- onboarding of large VAT taxpayers and priority sectors between 2026 and 2029;
- later expansion to wider taxpayer groups, increased automation, and deeper integration of invoice data into compliance risk engines and trade-related systems.
With additional framework detail expected in 2026, phased rollout anticipated from 2026–2027, and full operational capability targeted around 2028, subject to final official publication of the framework and regulations.
Conclusion
South Africa’s VAT Modernisation programme outlines a multi-year transition toward mandatory e-invoicing and near real-time VAT digital reporting, supported by SARS strategic planning and phased implementation design. Final legal requirements and binding dates remain tied to consultation and formal publication.
