ECT Act

Highway sound barrier

Enterprise Document Innovations, or EDI, adheres to the ECT Act No. 25 and meets all requirements for compliance set out by the South African Revenue Services.

To download or view the Electronic Communications and Transaction (ECT) Act click here. (link to PDF)

SARS

The EDD software solution has been audited by Ernst & Young and the Ernst & Young Report confirms that EDI complies with all the requirements as stipulated by SARS.

The South African Revenue Service has accepted that tax invoices, credit or debit notes may be issued not only as paper documents, but also as electronic documents. Sections 20 and 21 of the Value-Added Tax Act, 1991, refer to a document without stipulating that a tax invoice must be a hard copy. The South African Revenue Service's requirements in regard to electronic tax invoices, credit and debit notes are as follows:

  • The tax invoices, debit or credit notes must contain the mandatory information for tax invoices, credit or debit notes as stipulated in sections 20(4), 21(4)(a) and 21(4)(b) respectively.
  • Documents must be transmitted in encrypted form of at least 128bit.
  • Both the supplier and the recipient of the supply must retain the documents in readable and encrypted form for a period of five years from the date of supply.
  • If a service provider is used, he must also retain the documents for a period of five years.
  • Both the supplier and the recipient of the supply must have the necessary codes or other means available to enable SARS auditors to compare the documents in readable form with those in encrypted form.
  • The transmitted electronic document will constitute the original tax invoice, credit or debit note. Hard copies extracted from the system must bear the words computer generated copy tax invoice, computer generated copy credit note or computer generated copy debit note thereon. All further copies must also bear such words.
  • The recipient of the supply must confirm in writing that he is prepared to accept electronic tax invoices, credit and debit notes under the conditions set out herein. Such authority must be retained by the supplier for a period of five years after the last electronic document is issued to the recipient.
  • No other tax invoice, credit or debit note may be issued in respect of the specific supply, unless such document is marked as a copy of the original document.

Any vendor that complies with these requirements and advises SARS may issue electronic tax invoices, debit or credit notes in place of paper based tax invoices, debit or credit notes.