South Africa's digital VAT plan can learn from Rwanda and Uganda
SARS wants real-time e-invoicing by 2030. Rwanda, Uganda and Ethiopia have shown what digital tax records can do, and what else it takes.
Pretoria — The South African Revenue Service (SARS) wants businesses to send VAT invoice details digitally, in near real time, so it can pre-fill returns and spot mismatches early. Its roadmap points to a pilot in 2029/30 and a phased start from 2030. Researchers from UNU-WIDER, Stellenbosch University and the Institute of Development Studies write in The Conversation that other African countries got there first.
The stakes
VAT raised R457.8 billion in 2024/25, a quarter of South Africa's tax revenue. But the gap between what should have been reported and what was ran at an estimated 35% to 41% in 2016–2020.
What Africa has learned
- Rwanda: e-invoicing raised declared VAT by about $11,000 per firm per year; audits of e-invoicing firms added about $33,400 more.
- Ethiopia: in Addis Ababa, electronic sales registers raised VAT payments by at least 48%.
- Uganda: e-invoicing has been mandatory since 2021. When about 5,000 larger firms had to link their accounting software in 2022, reported VAT liabilities rose by nearly 150%, although some firms then under-reported sales.
- South Africa itself found that auditing fewer refund claims and paying faster lifted firms' investment by 31%.
The lessons
1. Collecting data is not enough: tax authorities must match buyers' and sellers' records and follow up on mismatches. 2. Pay refunds promptly; delays hurt investment, especially for small firms. 3. Pilot carefully, measuring cash collected, workloads and costs. 4. Start with sectors where gaps are biggest, such as construction. 5. Help small businesses with software and training.
Africa's own experience offers South Africa a ready-made guide.
Source: The Conversation, 15 October 2026.
