South Africa VAT E-Invoicing: SARS 2025–2030 Plan

February 21, 2026

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Following several key publications released between 2022 and 2025, including the VAT Modernization Discussion Paper (2023), South African Revenue Service (SARS) Modernization Whitepaper 3.0, and various SARS strategic and performance plans, South Africa confirmed that e-invoicing will be central to the country’s future VAT administration. Moreover, this aligns with the national goal to “make tax just happen,” marking a transition from traditional declaration-based VAT systems toward real-time, transaction-level digital reporting.

The Future VAT Operating Model

Building on the lessons from its Mid Term Review for 2020–2025, which showed that digital channels and technology-driven compliance improved efficiency, taxable persons' experience, and revenue stability, SARS’s Strategic Plan 2025–2030 identifies mandatory e-invoicing as a key initiative to transform it into a highly digital, data-driven authority capable of detecting risk at the point of transaction.

As announced, the future VAT model will rely on real-time or near-real-time transmission of structured invoice data from business systems to SARS, with automated cross-checks, enriched transactional detail, and, eventually, pre-populated or auto-assessed VAT returns. Furthermore, the implementation process will focus on the largest VAT contributors and high-risk sectors. At the same time, technical pathways will include both secure batch and API-based channels compatible with cloud ERP and SME accounting tools.

Moreover, the Strategic Plan 2025–2030 underscores SARS's dedication to becoming an AI-enabled, insight-driven Tax Authority, part of a broader institutional transformation aimed at aligning it with national development goals, trade efficiency, supply chain transparency, and interoperability with digital identity and payment systems.

While the Strategic Plan 2025–2030 provides an overview of what e-invoicing and e-reporting should achieve and how they will be implemented, the exact dates remain pending and await further consultations and capacity development. However, the planning documentation states that initial system design and pilot programs should be developed through 2026, followed by onboarding of the largest VAT-liable persons and priority sectors between 2026 and 2029.

Once this first phase is completed, subsequent phases will extend coverage to medium-sized enterprises and further develop the system to enhance VAT assessment automation and integrate e-invoicing data with risk management, customs, and trade systems.

Conclusion

Based on all available data, primarily from the National Treasury and Revenue Service and SARS, South Africa is moving steadily toward a seamless compliance environment in which taxation occurs automatically. Nevertheless, the path to achieving this vision of “tax just happens” is still in its early stages, and South Africa is expected to face challenges throughout the implementation process. One of the first tasks is to set the implementation timeline and provide taxable persons with exact technical and other requirements.

Source: KPMG, VATabout

Why is e-invoicing central to South Africa’s future VAT system?

E-invoicing is central because SARS aims to move from a declaration-based VAT system to real-time, transaction-level digital reporting. By receiving structured invoice data directly from business systems, SARS can automate cross-checks, detect risks earlier, and eventually support pre-populated or auto-assessed VAT returns.

What is the “tax just happens” concept in South Africa?

“Tax just happens” refers to the vision of a seamless, highly digital VAT system where compliance is embedded into everyday business processes. Instead of relying mainly on periodic declarations, tax reporting would occur automatically through real-time or near-real-time transmission of invoice data to SARS.

How will the future VAT operating model work?

The future model will rely on real-time or near-real-time transmission of structured invoice data from businesses to SARS. The system will perform automated cross-checks and enrich transactional data, with the long-term goal of enabling pre-populated or auto-assessed VAT returns and enhanced risk detection at the point of transaction.

Which taxable persons will be affected first by mandatory e-invoicing?

According to SARS planning documents, the initial phase will focus on the largest VAT-liable persons and high-risk sectors. After this onboarding phase between 2026 and 2029, the system will gradually expand to include medium-sized enterprises.

What technical channels will be used for e-invoicing in South Africa?

SARS plans to support both secure batch submissions and API-based channels. These will be compatible with cloud ERP systems and SME accounting tools, ensuring that different types of businesses can connect their systems to transmit structured invoice data.

When will e-invoicing be implemented in South Africa?

Exact implementation dates have not yet been confirmed and depend on further consultations and capacity development. However, system design and pilot programs are expected through 2026, with phased onboarding of large VAT taxable persons and priority sectors starting between 2026 and 2029.

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