South Africa Signals Move Toward Peppol E-Invoicing and Real-Time VAT Reporting
On the 3rd February 2026, South Africa’s SARS and National Treasury provided fresh insights into the country’s long-anticipated digital VAT reform, confirming that the government is actively progressing toward mandatory electronic invoicing and e-reporting for businesses. While not yet compulsory, the announcement highlights a potential Peppol-style 5-corner model, where invoices flow via authorised access points between buyer, seller, service providers, and SARS, enabling real-time VAT oversight.
The framework builds on the 2025 Draft Tax Administration Laws Amendment Bill (TALAB), which defines e-invoices, e-reporting obligations, and an interoperability structure to integrate suppliers, recipients, and the tax authority. Stakeholder consultations and technical specifications are expected throughout 2026–2027, setting the stage for a full operational rollout by 2028.
This approach aligns South Africa with global best practices, mirroring systems in France, Belgium, and Latin America, where structured, transaction-level VAT reporting has transformed compliance and enforcement. Early engagement is crucial: businesses, ERP providers, and auditors now have advance visibility to prepare systems, processes, and training for the phased adoption of real-time e-invoicing.
South Africa has not formally appointed a Peppol Authority. There is no official government designation of SARS or any other South African body as a Peppol Authority under the OpenPeppol governance framework at this time.
The 3rd February announcement is a signal that South Africa is serious about digital VAT modernization. While timelines remain indicative, the move sets a clear direction for structured, real-time VAT reporting, moving beyond post-filing audits toward continuous tax compliance.