South Africa: Consultation paper on VAT modernization
A consultation paper on VAT modernization, addressing topics including real-time reporting and e-invoicing
Consultation paper on VAT modernization
The South African Revenue Service (SARS) on 8 September 2023 issued a consultation paper on value added tax (VAT) modernization, addressing topics including real-time reporting and electronic invoicing (e-invoicing).
The goals of VAT modernization for SARS include greater availability of tax data in real to near-real time, and closing gaps for non-compliance. In addition, new levels of computing power provide SARS with more processing and analytical power of VAT data.
In particular, SARS is seeking to improve the VAT return disclosure requirements to:
- Align with financial accounting principles and the data as captured in these systems
- Improve data management, analysis and reconciliations by the vendor, for improved quality of its self-assessment VAT return to SARS
- Facilitate risk analysis by SARS supported by the VAT transactional data transfer validations
- Enable the building of more intuitive rules (artificial intelligence learning) to inform the SARS risk engine
Read an October 2023 report [PDF 388 KB] prepared by the KPMG member firm in South Africa
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