In August 2026, SARS released its VAT Modernisation Consultation Paper, outlining plans for a future VAT system built around e-Invoicing, digital information exchange and e-Reporting. For business owners, this doesn't mean you need to change the way you submit VAT tomorrow. But it does give us a very clear indication of where VAT compliance is heading and why having good accounting systems and accurate financial records is becoming increasingly important.

In this guide, we will demystify provisional tax, explaining what it is, how it works, and the implications of late payments in terms of int