Under the proposed system, SARS would gain earlier and more accurate insight into business transactions, long before VAT returns are formally submitted.<\/p>\n\n\n\n
Instead of relying largely on periodic self-assessments, the tax authority would increasingly be able to track VAT-related activity as it happens.<\/p>\n\n\n\n
Sesana said the e-invoicing regime promises a more streamlined experience for businesses whose systems align with SARS\u2019 requirements.<\/p>\n\n\n\n
Digitally structured invoices and verified VAT numbers will enable accounting systems to send VAT information directly to SARS almost in real time.<\/p>\n\n\n\n
For compliant businesses, this could mean fewer documentation requests, faster verification processes and improved turnaround times for VAT refunds.<\/p>\n\n\n\n
Sesana added that compliance would increasingly become embedded in daily operations rather than treated as a once-off monthly or bi-monthly task.<\/p>\n\n\n\n
However, the same systems would also give SARS unprecedented insight into vendors\u2019 operations.<\/p>\n\n\n\n
Real-time data from banks, accounting platforms and third-party systems would enable SARS to detect discrepancies early, often before a taxpayer becomes aware of an issue themselves.<\/p>\n\n\n\n
In its VAT modernisation discussion paper<\/a>, SARS noted that South Africa is lagging behind many other countries that have already introduced electronic VAT invoicing as a core compliance tool.<\/p>\n\n\n\n Globally, the dominant trend has been the digitisation of VAT source data, allowing tax authorities to receive transaction-level information directly from vendors\u2019 systems to ensure compliance across the value chain.<\/p>\n\n\n\n According to SARS, VAT was introduced in South Africa in 1991, replacing the general sales tax, and remains a critical and predictable source of government revenue.<\/p>\n\n\n\n It operates on a self-assessment basis using an invoice-based credit input method, placing the responsibility on vendors to maintain proper accounting records and documentation.<\/p>\n\n\n\n Tax invoices play a central role in this system, forming a key part of the audit trail used to verify VAT liabilities and refunds.<\/p>\n\n\n\n While SARS has introduced technology across parts of the VAT value chain\u2014including e-registration, eFiling and electronic payments\u2014it has limited visibility into supply chains from a self-assessment perspective.<\/p>\n\n\n\n SARS said this lack of visibility exposes the fiscus to revenue leakages that are time-consuming to detect and often require frequent audits and verifications.<\/p>\n\n\n\n This places a heavy burden on businesses and delays VAT refunds.<\/p>\n\n\n\n To address these challenges, SARS plans to introduce a modern VAT return supported by the digital transmission of VAT data directly from vendors\u2019 accounting systems.<\/p>\n\n\n\n SARS acknowledged that these changes will require amendments to both primary and secondary legislation.<\/p>\n\n\n\n Proposed changes include prescribing mandatory disclosure requirements for a modern VAT return, identifying categories of vendors or transaction types that must transmit VAT data digitally, and introducing penalties to discourage non-compliance.<\/p>\n\n\n\n As part of the consultation process, SARS has invited input from businesses, accounting software developers, technology providers, professional bodies and the public. <\/p>\n\n\n\n Stakeholders are being asked to comment on VAT data models, the digital transmission of VAT data, and the design of a modern VAT return with more detailed, disaggregated disclosure fields.<\/p>\n","protected":false},"excerpt":{"rendered":" The National Treasury has proposed introducing an e-reporting, also known as e-invoicing, framework into the VAT Act in South Africa. <\/p>\n","protected":false},"author":92,"featured_media":820023,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[853,24652,21727,7438],"class_list":["post-849589","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-south-africa","tag-the-south-african-institute-of-taxation-sait","tag-the-south-african-revenue-service-sars","tag-vat"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/849589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=849589"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/849589\/revisions"}],"predecessor-version":[{"id":849600,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/849589\/revisions\/849600"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/820023"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=849589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=849589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=849589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Will require amendments to both primary and secondary legislation<\/h2>\n\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/03\/SARS-1024x576.jpg\")
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