Introduction

South Africa is moving steadily toward a new era of digital VAT compliance as part of the South African Revenue Service’s (SARS) VAT Modernisation programme. While a formal e-invoicing mandate has not yet been enacted, recent stakeholder engagements and earlier draft proposals indicate that SARS is preparing a structured e-invoicing and VAT reporting framework that will significantly reshape how transactional data is reported and monitored.

This direction aligns South Africa with a broader regional trend across Africa, where tax authorities are increasingly adopting electronic invoicing, fiscalisation, and real-time reporting models to improve VAT visibility and reduce fraud.

Timeline

SARS first signalled its intention to modernise VAT administration in 2023, publishing a VAT Modernisation discussion paper outlining a shift toward greater automation and digital reporting. Based on stakeholder commentary, SARS is expected to release further detail on its e-invoicing framework early this year, with a phased rollout anticipated from 2026-2027 and full operational capability targeted around 2028.
At this stage, these timelines should be treated as directional, pending official publication of the final framework and regulations.

Impact and regional context

What South Africa is signalling

Draft legislation and stakeholder discussions point toward a future VAT environment built on:

• Digitally structured e-invoices that enable automated processing
• Near-real-time transmission of invoice data from business systems to SARS
• An interoperability framework, likely involving networks of service providers enabling decentralised exchange of compliant invoice data

For businesses, this represents a shift from periodic, return-based VAT compliance to continuous, system-driven compliance, where data accuracy at the point of invoice creation becomes critical.

How South Africa compares regionally

Across Africa, countries are adopting different e-invoicing and digital reporting models, reflecting varying policy and technical approaches:

• Ghana has implemented an E-VAT system that follows a more clearance-style model, supported by certified invoicing systems and central validation. Invoice data is closely controlled and validated before or at issuance, giving the tax authority early visibility of transactions.‍
• Nigeria is rolling out a national e-invoicing ecosystem built around a central platform and accredited service providers. ‍
• Zimbabwe operates a fiscalisation model through its Fiscalisation Data Management System (FDMS). Invoices are validated using verification or QR codes, and VAT compliance is tightly linked to transaction-level data and device-based controls.

South Africa’s emerging approach appears aligned with these developments but does not yet lock the country into a single model. Instead, it points toward a hybrid outcome: structured e-invoices, continuous data transmission, and an interoperability network that could support multiple technical implementations.

What this means for businesses

Even ahead of a formal mandate, businesses operating in South Africa, especially those active across multiple African jurisdictions, should begin preparing for increased digital VAT controls.

As Africa continues its shift toward electronic invoicing and real-time reporting, organisations with flexible, scalable e-invoicing capabilities will be best positioned to adapt quickly to South Africa’s forthcoming requirements while maintaining compliance across the region.