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Global Context

VAT Modernisation on the World Stage

VAT Modernisation Worldwide

But South Africa is not alone on its VAT modernisation journey! In fact, tax authorities around the world have already started to implement or are planning to implement their modernised VAT reporting frameworks.

Click on parts of the map below to find out how other regions are updating their VAT frameworks and adopting e-invoicing…

city skyline during sunset
woman smiling and looking sideways
world map with countries colour coded by level of vat modernisation implementation
Middle East

The Middle East has seen a lot of activity in terms of e-invoicing and digitisation with Saudi Arabia being the first gulf nation to formally roll out e-invoicing regulation for VAT registered businesses. Other countries in the region that have rolled out or have plans to roll out e-invoicing regulation include Oman, Bahrain, UAE, Qatar, Egypt, Jordan and Israel.

Latin America

E-invoicing and VAT modernisation frameworks have been widely adopted in South America, with the majority of these countries operating under a Clearance Model. Here, businesses must “clear” each invoice on their tax authority’s authorisation platform before (pre-clearance) or shortly after (post-clearance) sending it to the end recipient. Examples of Latin American countries that have adopted a pre-clearance framework include Brazil, Argentina and Columbia whereas countries such Ecuador and Peru report VAT under a post clearance model.

USA and Canada

Neither Canada nor USA have have rolled out any VAT modernisation initiatives or e-invoicing mandates and continue to operate under a traditional, post audit system. However, there are some privately driven initiatives in the US to encourage the adoption of e-invoicing in efforts to further digitise sales and purchase cycle processes for businesses.

Asia-Pacific and Australia

Adoption of e-invoicing continues to grow in this region with countries such as China, India, Vietnam and Australia having introduced some form of mandatory e-invoicing. Japan and Singapore have yet to make e-invoicing mandatory, but it continues to be widely encouraged with both countries being two of the four PEPPOL authorities outside of Europe.

Africa

Most African nations are in the early stages of rolling out VAT modernisation and/or e-invoicing regulations. However, there are already many African countries that have implemented or are taking the steps to implement modernised VAT reporting such as Kenya, Ghana, Angola, Rwanda and Nigeria. In Africa, the fiscalisation model appears to be most popular, which requires the use of a hardware device to report VAT data to the government.

Europe

Europe has arguably been the region with the most e-invoicing traction and activity with a variety of reporting frameworks being implemented across the continent. In addition, the EU is also working to implement its proposal for VAT in the Digital Age (ViDA), which aims to drive e-invoicing and VAT digitisation even further.

Asia-Pacific and Australia

Adoption of e-invoicing continues to grow in this region with countries such as China, India, Vietnam and Australia having introduced some form of mandatory e-invoicing. Japan and Singapore have yet to make e-invoicing mandatory, but it continues to be widely encouraged with both countries being two of the four PEPPOL authorities outside of Europe. ​

South Africa

Planned implementation for 2028

Latin America

E-invoicing and VAT modernisation frameworks have been widely adopted in South America, with the majority of these countries operating under a Clearance Model. Here, businesses must “clear” each invoice on their tax authority’s authorisation platform before (pre-clearance) or shortly after (post-clearance) sending it to the end recipient. Examples of Latin American countries that have adopted a pre-clearance framework include Brazil, Argentina and Columbia whereas countries such Ecuador and Peru report VAT under a post clearance model.

USA and Canada

Neither Canada nor USA have have rolled out any VAT modernisation initiatives or e-invoicing mandates and continue to operate under a traditional, post audit system. However, there are some privately driven initiatives in the US to encourage the adoption of e-invoicing in efforts to further digitise sales and purchase cycle processes for businesses.

Middle East

The Middle East has seen a lot of activity in terms of e-invoicing and digitisation with Saudi Arabia being the first gulf nation to formally roll out e-invoicing regulation for VAT registered businesses. Other countries in the region that have rolled out or have plans to roll out e-invoicing regulation include Oman, Bahrain, UAE, Qatar, Egypt, Jordan and Israel.

Africa

Most African nations are in the early stages of rolling out VAT modernisation and/or e-invoicing regulations. However, there are already many African countries that have implemented or are taking the steps to implement modernised VAT reporting such as Kenya, Ghana, Angola, Rwanda and Nigeria. In Africa, the fiscalisation model appears to be most popular, which requires the use of a hardware device to report VAT data to the government.

Europe

Europe has arguably been the region with the most e-invoicing traction and activity with a variety of reporting frameworks being implemented across the continent. In addition, the EU is also working to implement its proposal for VAT in the Digital Age (ViDA), which aims to drive e-invoicing and VAT digitisation even further.

Asia-Pacific and Australia

Adoption of e-invoicing continues to grow in this region with countries such as China, India, Vietnam and Australia having introduced some form of mandatory e-invoicing. Japan and Singapore have yet to make e-invoicing mandatory, but it continues to be widely encouraged with both countries being two of the four PEPPOL authorities outside of Europe.