SARS Calls for Public Comment on VAT Modernisation Consultation Paper

Posted 20 August 2026 Written by Acts Online
Category Tax

Brought to you by SA Legal Academy: Under the regulatory framework of the Value-Added Tax Act, No. 89 of 1991, the South African Revenue Service (SARS) has issued a media statement and consultation paper proposing the phased implementation of a digital VAT model.

The consultation paper forms part of the broader SARS modernisation programme and builds on stakeholder feedback received on an initial 2023 version. The stated objective is to establish a secure, structured, and near-real-time flow of VAT transaction data across the value chain to reduce compliance friction and improve audit oversight.

Key Pillars of the Modernisation Proposal

  • Electronic Invoicing (E-Invoicing): Establishing standardised electronic invoice generation and validation protocols.
  • Interoperability Framework: Introducing system-wide integration standards to allow direct data exchange between vendor accounting/ERP platforms and SARS.
  • Digital E-Reporting: Near-real-time reporting of transaction-level VAT data to streamline return filing and verify input tax claims.

Submissions and input on the VAT modernisation consultation paper must be lodged by 16 October 2026.

What this means for you, your business, or your clients

  • For yourself: Tax practitioners and auditors should review the proposed technical architectures to anticipate future data-matching and transaction-level audit procedures.
  • For your business: Internal finance and IT teams must evaluate existing enterprise resource planning (ERP) and invoicing systems for eventual compliance with SARS interoperability and digital transmission standards.
  • For your clients: Registered VAT vendors must prepare for phased mandatory transitions toward digital e-invoicing and structured e-reporting workflows, which will directly alter daily billing and VAT record-keeping.

Originally published at https://legalacademy.co.za/news/read/vat-input-sought-on-modernisation-consultation-paper

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