Mbabane – Business Eswatini (BE) has backed Eswatini move towards electronic invoicing but has called on the Eswatini Revenue Service (ERS) to ensure that the new digital tax system is practical, affordable and capable of working with the different technologies and operating realities of businesses before it is rolled out nationally.
The call came during an engagement between BE, ERS and members of the retail and wholesale sector on the Fiscalisation Project, commonly known as e-invoicing. While the project promises to modernise tax compliance and reduce reliance on manual and paper-based invoicing.
Businesses raised practical concerns about the cost of implementation, integration with existing Point-of-Sale and accounting systems and how the transition towards a new digital tax environment will be managed.
The engagement also resulted in several companies volunteering to participate in the pilot phase of the project, signalling that the private sector is willing to support the country’s digital transformation agenda.
However, BE’s position is that support for e-invoicing should not be mistaken for an absence of concerns. Businesses want assurances that the system will work in their daily operating environments and will not create unnecessary costs, technical problems or additional administrative burdens.
The Fiscalisation Project is expected to move businesses away from manual and paper-heavy invoicing towards a standardised digital system where transactions can be generated, transmitted and validated electronically in real time or near real time.
ERS believes the system could improve accuracy, reduce errors, speed up processing and create a smoother path towards voluntary tax compliance. The major question, however, will be whether the system can work effectively for businesses of different sizes and technological capabilities.
THE TECHNOLOGY QUESTION
The move towards electronic invoicing represents more than simply replacing a paper invoice with a digital one. For businesses, it could mean changing or integrating the systems they use to process sales, record transactions and manage financial information. Some companies may already have modern Point-of-Sale and accounting platforms that can adapt to the new requirements, while others may need to upgrade their systems or seek additional technical support before they are ready.
This was among the practical issues raised during the engagement. Businesses wanted clarity on how the new system would work with technologies already being used in their operations. For retailers and wholesalers processing large numbers of transactions every day, the reliability and compatibility of the system will be critical. Any difficulty with integration could affect the speed of transactions and create challenges for employees and customers.
BE has therefore stressed that implementation must take into account the different levels of technological readiness within the private sector. Larger companies may have access to dedicated information technology teams and modern systems, while smaller businesses may operate with fewer resources and limited technical capacity. A successful national rollout, the organisation believes, cannot assume that every business is starting from the same position.
WHAT WILL IT COST?
Cost is another important question as Eswatini moves towards electronic invoicing. Although a digital system may eventually reduce paperwork and improve efficiency, the transition itself could require businesses to invest in new technology, system upgrades, technical support and employee training. The financial impact may differ significantly from one company to another.
This is why BE has called for a practical and proportionate approach. What may be manageable for a large retailer could present a significant challenge for a smaller business. Companies need clear information about what will be required before they can adequately prepare for implementation. Without this clarity, businesses may struggle to assess the financial and operational changes needed to comply with the new system.
The concern is not that businesses are rejecting technology or resisting the country’s digital transformation. The willingness of several companies to volunteer for the pilot phase shows that there is interest in participating in the project. However, BE says the introduction of e-invoicing must not result in a system designed to simplify tax compliance becoming an additional financial or administrative burden.
BUSINESSES STEP INTO THE PILOT
The decision by several companies to volunteer for the pilot phase could become one of the most important stages of the Fiscalisation Project. The pilot will allow ERS to test the system in real business environments before it reaches a wider number of companies. It could reveal technical challenges, integration problems and other practical issues that may not be visible during the design stage.
For businesses, participation in the pilot will provide an opportunity to experience the system and provide direct feedback. Companies could identify challenges involving Point-of-Sale and accounting systems, employee training and the daily processing of transactions. This information could help ERS refine the implementation model before moving towards a national rollout.
The value of the pilot will, however, depend on how feedback from businesses is handled. If companies can raise concerns openly and those concerns result in meaningful improvements, the process could build confidence in the project. If practical challenges are identified but not addressed, businesses may become more concerned about the wider rollout.
CONSULTATION IS KEY
BE Chief Executive Officer E. Nathi Dlamini said continued engagement between the private sector and the revenue authority was necessary for the successful implementation of the project. He said consultation should help identify challenges before they become costly problems for businesses or the revenue administration.
“Continued, deep engagement is not a luxury; it is a necessity,” Dlamini said. “Early, robust consultation is the only way to identify implementation challenges before they become costly speed bumps for either businesses or the revenue administration.”
The statement reflects BE’s broader position that businesses should not simply be informed about new systems after decisions have already been made. The private sector wants to be involved in identifying challenges and developing solutions while the project is still being tested and refined. Businesses understand their daily operating environments and can provide practical information about challenges that may not always be visible from a technical or regulatory perspective.
By facilitating the engagement, BE also reinforced its role as a bridge between the private sector and regulatory authorities. As the project moves forward, the organisation is expected to continue representing its members and ensuring that their concerns about costs, technology and implementation remain part of the national discussion.
DIGITAL TRANSFORMATION MEETS BUSINESS REALITY
The Fiscalisation Project forms part of Eswatini’s broader journey towards digital transformation. Electronic systems have the potential to reduce manual processes, improve record-keeping and create more efficient ways of handling business transactions. For ERS, e-invoicing could provide a more modern and standardised approach to tax administration while encouraging voluntary compliance.
However, digital transformation does not happen at the same speed for everyone. Businesses have different resources, technologies and levels of access to technical expertise. The challenge for ERS will be to ensure that the system does not create a divide between businesses that are technologically prepared and those that need more time and support to adapt.
The project will therefore be tested not only by the technology but also by the ability of businesses to use it effectively. Clear communication, continued consultation and adequate preparation could determine whether the transition is smooth or difficult.
Businesses cannot simply stop trading while adapting to a new system, making it important that implementation considers the realities of companies processing transactions every day.
THE REAL TEST
As the Fiscalisation Project moves from consultation towards piloting and eventual wider implementation, the experience of participating businesses will become increasingly important. Their feedback could help determine whether the system is ready for a national rollout or whether further adjustments will be required.
For ERS, the challenge will be to ensure that the project delivers on its promise of improved efficiency without creating unnecessary difficulties for businesses.
BE, the responsibility will be to continue representing its members and ensuring that the concerns raised during the engagement are not lost as implementation progresses.
The Fiscalisation Project could become one of Eswatini’s most significant steps towards modernising tax compliance. It offers the potential to improve accuracy, reduce reliance on manual processes and make the handling of transactions more efficient. Yet its success will not be measured by technology alone.
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