SARS Digitisation Is Coming: How Businesses Can Start Preparing

South African businesses are entering a new era of tax compliance as the SA Revenue Service steadily modernises its tax ecosystem. They will be compelled to work on upgraded eFiling and e@syFile platforms, use e-invoicing and e-reporting as their standard, and align with SARS’ modernisation of the VAT system.

These changes are not yet mandatory, and draft legislation points to a phased rollout to be completed around 2028. This may seem distant, but preparation today can prevent operational headaches tomorrow. Renaldo Muregess, Head of Software Pre-Sales at Itec South Africa, says that the sooner businesses understand the changes and align their systems, the smoother the transition will be: “Companies that act early will gain clarity, reduce risk, and avoid last-minute crises.”

Early preparation is about structuring invoice data, validating systems, and giving finance teams real-time visibility across all transactions. “The benefits go beyond compliance,” says Muregess. “Streamlining and digitising internal processes now will work to reduce errors, save time and free teams up to do more, and strengthen governance leading up to the implementation deadline.”

Seeing where SARS is heading

SARS’ digital transformation aims to make reporting more standardised and transparent by moving companies onto a Peppol-style interoperability model that enables them to exchange structured, machine-readable invoices through certified access points or service providers. In doing so, the authority is encouraging businesses to think beyond spreadsheets and manual processes, and to focus instead on automated workflows that integrate seamlessly with ERP and accounting systems.

By starting to adapt now, organisations can address technical requirements, test systems, and ensure that their teams are prepared well ahead of mandatory deadlines.

Understanding the SARS digitisation process

Knowing the risks

Muregess says that, instead of creating new risks, digitisation exposes weaknesses that have always existed – and helps to eliminate them. “Dispersed spreadsheets, paper-based records, and siloed departmental data can increase errors and make audits stressful. Businesses that confront these vulnerabilities early can strengthen compliance and improve operational efficiency simultaneously. This approach turns a potentially daunting change into an opportunity for improvement and resilience.”

Leveraging the benefits

For finance, compliance, and IT teams alike, the shift is about more than reporting. The new, structured processes will reduce the time spent reconciling invoices and tracking missing information manually, and the resulting centralised, validated data will make errors visible before they reach SARS.

But choosing the right implementation partner is crucial. Experts can guide companies through technical setup, ensure that workflows are standardised, and train employees, creating a smoother, less stressful transition. This, in turn, allows tax compliance to become a routine part of operations rather than a crisis-driven task.

“When your data is structured and visible, compliance becomes a by-product, not a burden. Companies that partner with experts early will be in a stronger position to embrace SARS’ digital future with confidence, while also gaining efficiency, transparency, and greater control over their financial reporting,” says Muregess.