SARS’s proposed digital VAT model could change how businesses manage, capture and report VAT, with e-invoicing, e-reporting and digital data sharing forming part of the proposed system.
South African businesses could face significant changes to the way they invoice, capture and report VAT if SARS’s proposed digital VAT model becomes a reality.
The South African Revenue Service (SARS) has invited the public and affected stakeholders to comment on its VAT Modernisation Consultation Paper, which sets out proposals for a more digital, data-driven VAT system.
The consultation forms part of SARS Modernisation 3.0 and follows the VAT Modernisation Discussion Paper released in 2023, with the latest proposals aimed at changing how VAT information moves between businesses, service providers and SARS.
For businesses, the proposed shift could mean that VAT compliance becomes more closely integrated into everyday financial and accounting processes.
