South African Revenue Services (SARS) is preparing to launch a mandatory e‑invoicing model, with full operational capability targeted for 2028. The initiative builds on the 2025 Draft Tax Administration Laws Amendment Bill and will include e‑invoicing, e‑reporting and a Peppol‑based interoperability framework. A phased rollout is planned for 2026‑2027, with stakeholder engagement and framework publication before the 2028 launch.
South Africa is targeting full operational e‑invoicing capability in 2028.
The 2025 Draft Tax Administration Laws Amendment Bill (TALAB) provides the legislative basis for the e‑invoicing model.
A Peppol‑based 5‑corner real‑time VAT transaction reporting model is being considered for interoperability.
The proposed model includes e‑invoicing, e‑reporting, and a Peppol‑based interoperability framework.
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Sunday Independent · 3 days ago
South Africa’s National Treasury is unlikely to raise the VAT rate for Budget 2026/27, citing political resistance. Instead, the focus will shift to enforcement and administrative reforms to strengthen the VAT system. A R20 bn tax increase pencilled in for 2026/27 is also expected to be reconsidered based on Sars performance.
KPMG · 13 days ago
South Africa’s tax authority, SARS, has confirmed a multi‑year plan to roll out mandatory e‑invoicing and real‑time VAT digital reporting. The phased approach will begin with system design and pilot engagement through 2026, followed by onboarding of large VAT taxpayers and priority sectors between 2026 and 2029. The reform aims to transform VAT administration into a seamless, data‑driven process where compliance is automated and risk is detected at the point of transaction.
Daily Investor · 17 days ago
South Africa’s 2026 Budget will focus on whether VAT can keep pace with a digitised economy rather than on rate hikes. A proposed two‑percentage‑point increase was tabled and rejected in 2025, and the Finance Minister confirmed that VAT rate increases for 2025/26 and 2026/27 have been dropped. The Treasury is examining how digital services supplied by foreign providers are taxed and whether the current framework captures modern consumption.
LinkedIn Article by Willem O. · about 1 month ago
The South African Tax Court ruled that government funding is taxable when it is paid in exchange for identifiable services, regardless of the label ‘grant’. The decision focuses on commercial reality—formal agreements, deliverables, invoicing and performance oversight—rather than organisational form or public‑benefit objectives. Accounting classifications do not override VAT characterisation, underscoring the need for careful governance and early tax input.
Addis Fortune · 3 days ago
Ethiopian judges on 21 February 2026 rejected a bid by lawyers to freeze a controversial VAT directive, leaving the directive in effect. The decision centers on whether VAT compliance can be compelled without a threshold, a question that has implications for legal professionals and businesses. The ruling clarifies that the current VAT registration requirements remain unchanged.
NigeriaInfo · 8 days ago
Nigeria’s 2025 Tax Act removes VAT on land, completed buildings, and both residential and commercial rent, effective January 2026. The reform allows contractors to recover input VAT on construction materials and gives tenants rent relief up to ₦500,000, capped at 20 % of annual rent. Mortgage interest for owner‑occupied homes remains tax‑deductible.
