South Africa has introduced the Tax Administration Laws Amendment Act, 2026, establishing definitions and an interoperability framework for e-invoicing and voluntary e-reporting under the VAT Act, with full implementation expected by 2028.
South African Revenue Service (SARS) has enacted the Tax Administration Laws Amendment Act, 2026 (Act No. 4 of 2026) published on 1 April 2026 in Government Gazette No. 54447, introducing a legal framework for e-invoicing and voluntary e-reporting under the Value-Added Tax Act No. 89 of 1991 (VAT Act).
The Amendment Act introduces formal definitions for “e-invoice, e-debit note, and e-credit note”, which refer to VAT documents issued, transmitted, and received in a structured electronic format enabling automatic electronic processing, subject to further requirements prescribed by the Minister by Regulation.
It also defines “e-reporting” as the electronic submission of tax data derived from these documents to SARS, the supplier or service provider, and the recipient or service provider where applicable.
The law establishes an interoperability framework based on a decentralised network of service providers under a decentralised CTC model, allowing exchange and clearance of e-invoices and related documents. The framework applies to VAT-registered vendors, with further operational rules to be set through ministerial regulations.
Participation in the e-reporting system is presently voluntary. SARS is implementing the reform under its VAT Modernisation Project, with mandatory e-invoicing and e-reporting expected to be fully operational by 2028 following phased rollout and stakeholder engagement.
Earlier, SARS was preparing to shift VAT compliance to a digital model under its VAT Modernisation programme. Structured e-invoicing was to be a key part of the system, enabling near-real-time transaction reporting rather than relying on periodic VAT returns.
