South Africa’s journey toward mandatory e-invoicing is accelerating, and for manufacturers, distributors, and wholesalers, the countdown has officially begun. While electronic invoicing is currently voluntary for B2B transactions, the South African Revenue Service (SARS) has stated its intention to move to mandatory e-invoicing, as part of its modernisation programme, by 2028. The rollout is expected to align South Africa with global efforts to streamline compliance, reduce administrative burdens, and improve transparency.

Says Stephen Howe, Director at Times 3 Technologies (T3T), business solutions specialist, “If we take heed of what’s happening in the rest of Africa, and with SARS looking at 2028, businesses need to start getting processes in place now to stay ahead of the curve and avoid scrambling when deadlines arrive.”

For manufacturers, distributors, and wholesalers, e-invoicing isn’t just another digital initiative. It fundamentally changes how financial operations and compliance will function.

According to Howe, the shift comes in two major forms. First is revenue-authority integration. “An organisation that doesn’t have a solution capable of integrating with the revenue authority will have a challenge,” he explains. Several African countries initially allowed manual submissions but later required full automation. “If systems don’t support automated e-invoicing, how will companies continue to trade in those environments?”

The second shift is commercial, driven by supply-chain partners. Howe notes that large vendors, retailers and multinational organisations are beginning to dictate e-invoicing as a prerequisite for trading. “If you send one invoice a month, you can manage manually. But if you’re sending 1,000 or 2,000 invoices a day, manual processes simply can’t scale. Systems must be in place to support the process end-to-end.”

This becomes even more complex for South African companies operating cross-border. Certain African countries already require invoice documents to feature QR codes generated in real time by revenue authorities. “A local company with an operation in a country where e-invoicing is mandatory, has to comply in order to do business there,” Howe says.

Unlike the EU, where many nations follow shared frameworks, Africa currently has no common standard. “Not all e-invoicing standards are equal,” Howe explains. “These complexities require flexible systems capable of handling a variety of scenarios.”

Once e-invoicing becomes mandatory, spreadsheets and legacy systems will no longer be sufficient. Risks will include non-compliance penalties issued by revenue authorities; manual workload escalation, especially where volume is high; the inability to trade with partners who require integrated e-invoices and breakdowns in operational efficiency and visibility.

“Without modern systems, businesses may face significant manual workload and compliance challenges,” warns Howe. “And that can quickly lead to fines and operational bottlenecks.” Modern ERP solutions provide the visibility, automation, and integration required for e-invoicing readiness. “Without it, how will you do it?” Howe asks. “It’s not going to be a choice. “Full integration ultimately enables seamless e-invoicing.”

Integrated ERP capabilities ensure real-time inventory and supply-chain visibility; accurate order-to-cash data; the elimination of human error; stronger traceability and tax accuracy as well as reduced manual reconciliations. Without a single, unified system, Howe warns that companies “won’t be able to comply with legal or fiscal requirements at a compliance level or operate efficiently at a vendor level.”

ERP flexibility is crucial, given that South Africa’s eventual e-invoicing framework is not yet defined. “Your ERP system must be built on modern architecture and be amendable without touching source code. It’s a complicated process and we need to be ready for it.”

To avoid disruption, organisations should begin preparing immediately. Howe recommends three steps: Review existing systems to determine whether they are aligned with future e-invoicing requirements; educate leadership and operational teams on what e-invoicing will mean for daily procedures and start building internal readiness from process redesign to data hygiene to workflow automation. “It’s about understanding what the requirements will look like and preparing people for the change that is coming,” Howe says.

The message for local business is clear. Modernise systems and processes now to ensure compliance, streamline operations, and be ready for mandatory e-invoicing while also staying ahead of the competition.