On August 16, 2025, the National Treasury and the South African Revenue Service (SARS) released the Draft Tax Administration Laws Amendment Bill (TALAB) for public comment, which will remain open until September 12.
This bill is designed to facilitate and support SARS's VAT Modernization Project, which includes the implementation of an e-invoicing and e-reporting regime.
Peppol-Based 5-Corner Model for Real-Time VAT Transaction Reporting
SARS may adopt a 5-corner Peppol-based model, which is emerging as the preferred Continuous Transaction Control (CTC) framework. The agency has been examining similar initiatives in countries such as Italy, Chile, India, Uganda, the EU with its ViDA directives, and the UK. SARS is assessing various approaches to digital and e-invoice reporting, including:
- Continuous Transaction Control with pre-approval models
- Centralized versus decentralized reporting systems
- Mandatory e-invoicing (as seen in Italy) versus post-invoice digital reporting (as implemented in Spain)
- Scope considerations, including B2G, B2B, and B2C transactions, as well as phased implementation and applicable thresholds.
As part of the consultation process, all relevant stakeholders—including businesses, accounting software developers, technology entities, recognized controlling bodies, and the general public—are encouraged to provide their input on:
- The development of VAT data models
- The digital transmission of VAT data, typically used to compile and report VAT returns to SARS
- The design of a modern VAT return that incorporates disaggregated and new data disclosure fields.
This initiative represents a significant step towards enhancing tax compliance and efficiency in South Africa’s VAT system.
How Can KGT Support You?
KGT has created an SAP-integrated SAF-T add-on solution for South Africa, featuring outbound and inbound functionalities to meet tax reporting requirements. This add-on includes a data extractor and a cockpit for generating periodic e-invoicing files in the legal format and controls before submission. When SAP DRC launched the South African e-invoicing solution as part of its e-document offerings, KGT emerged as a leading consultancy firm for SAP DRC and tax services. Recognized as an SAP DRC partner for South African services, KGT is one of SAP's recommended implementation partners for this solution. We provide comprehensive support, including installation, configuration, customization, and training, to help you maximize the long-term value of your SAP DRC investment.
KGT is an SAP partner for PE services and an SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us at: https://partnerfinder.sap.com/profile/0001925409
