The revised  2011 Tax Compliance Country Guide V42  includes an updated chapter for South Africa.  This country guide was authored and signed by KPMG’s local office in Johannesburg.  We found that no changes needed to be made to our solution.

 

Status of VAT and e-Invoicing in Africa

 

VAT was introduced in South Africa in 1991 to replace the general sales tax (GST).  South Africa was one of the first countries in Africa to introduce VAT.  Since then, the majority of African countries have introduced VAT, e.g. Botswana, Kenya, Mozambique, Namibia, Tanzania, Uganda, Zimbabwe to name a few.

 

Very few countries in Africa allow paperless electronic invoicing today.  South Africa has however allowed sellers to issue tax invoices into their customers electronically instead of in paper format since 2002.

 

Example of an invoice issued in South Africa

 

The fields that are mandatory on an invoice in South Africa are not any different from the fields that in many cases need to be present on invoices in the EU.

SouthAfricaInvoice.png

Figure: Example of a Tax Invoice in South Africa (source: "VAT 404 - Guide for Vendors" by the South African Revenue Service)

 

See Ariba's Country Guide for more details on how the Ariba solution maps to the South African requirements.

 

If you are interested in e-Invoicing in South Africa, please contact your Ariba representative for the latest version of Ariba's Country Guide.