South Africa Formalizes 2028 Target for Mandatory Peppol-Based E-Invoicing

SARS is expected to announce its mandatory e-invoicing framework in 2026, with phased implementation leading to full operational capability by 2028 under its VAT modernization program and the 2025 Draft TALAB (Tax Administration Laws Amendment Bill). The model will define structured e-invoices, electronic VAT data reporting, and an interoperability framework using accredited service providers. South Africa may adopt a Peppol-based 5-corner Continuous Transaction Control model, similar to reforms in France and Belgium. Stakeholder consultations are ongoing, focusing on VAT data models, digital transmission, and redesign of VAT returns. Businesses should prepare for progressive onboarding ahead of the 2028 target.

Legislative and Timeline Framework

• 2025 – Legal foundation established under TALAB
• 2026–2027 – Publication of technical framework and stakeholder onboarding
• 2028 – Target for full implementation

Core Elements of the Proposed Model

1. E-Invoice Definition
   A tax invoice is issued, transmitted, and received in a structured electronic format allowing automated processing.
2. E-Reporting Definition
   Electronic submission of VAT data from e-invoices, credit notes, and debit notes to SARS and relevant parties.
3. Interoperability Framework
   A decentralized exchange network using accredited service providers, potentially enabling both data clearance and interoperability between trading parties.

Likely Peppol-Based 5-Corner Model

SARS may adopt a Peppol-based 5-corner model, a form of Continuous Transaction Controls (CTC) increasingly used globally. France (from 2026) and Belgium (2026–2028) are implementing similar frameworks.

SARS has studied multiple international models (including Italy’s clearance system and Spain’s post-invoice reporting approach) and is evaluating scope (B2G, B2B, B2C), thresholds, and phased implementation.

Consultation Focus

Stakeholders are invited to comment on:

• VAT data models
• Digital transmission of VAT data
• Design of a modern, disaggregated VAT return

South Africa is moving toward structured, real-time VAT reporting, potentially via a Peppol-style interoperability network. While 2028 is the target for full rollout, businesses should anticipate progressive onboarding and system alignment well before that date.