It's not a shifting ability... If you looked at the sword 2 pages prior to Madara being stabbed, it was in the ground. If Sasuke shifted places with it, it should still have been facing downwards, not upwards to stab Madara. Furthermore, if it were a shifting ability, despite distance, Sasuke would still be able to shift locations. If Madara was too far, then Sasuke should still be able to shift a distance towards Madara to close the gap without even moving.
The fact Sasuke couldn't use the technique at all while Madara was out of distance proves it's not a shifting ability. My thought on this ability is derived from Itachi. The more powerful the eyes, the more it can turn dream into reality. Itachi specialized in his Tsukuyomi. However, what he excelled in most that Sasuke lacked in was stated by Danzo. Itachi had more control over time within the Tsukuyomi realm, making a minute seem like eternity. The eyes Sasuke has right now are not his if you remember, but instead, Itachi's, whom he had Obito transplant prior to the war.
The Rinnegan, in my opinion, is making Itachi's ability to alter ones senses over time a reality rather than a dream. While in distance, Sasuke is altering Madara's senses. However, it's not an ability that requires eye contact, as Naruto too is being affected by the ability when activated. Both Naruto and Madara are placed in a state where they think time is moving at a normal pace (which it still is), however, they had their sense slowed down, allowing Sasuke to quickly move locations before the ability ends.
Madara also said Sasuke was extremely fast, even without the ability. That also explains the distances Sasuke can move in the short time, including moving to the sword to grab to stab Madara with it before the ability runs out.
However, the eye doesn't work on all senses. Madara quickly is realizing how this ability works. It seems Naruto is also knowing where Sasuke is immediately during the abilities activation. Also, judging from Madara's Limbo, given that it's a technique only able to be used by ones who have the power of the Sage, that means any technique that uses Sage chakra cannot distort the Sage's own chakra. Naruto and Madara's sensing ability given to them via the Sage chakra allows them to know Sasuke's movement the entire time. The problem is they still have their own non-sage bodies and chakras that can still be altered by Sasuke. I'm guessing that may also be the reason as to why the ability is so short and how Madara escaped despite Sasuke using this space-time technique on him during the page where both Naruto and Sasuke attacked from either side.
/TLDR: Not a shifting ability, but rather, an ability controlling surroundings senses over time with the use of Itachi's eyes.