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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