How to make an invoice in South Africa (with a free template)

What every invoice must include

There is no single law that dictates the layout of a non-VAT invoice in South Africa, but there is a well understood standard that clients, bookkeepers and SARS expect. Put these on every invoice:

1. The word "Invoice" (or "Tax Invoice" if you are VAT registered) at the top.
2. Your business details: trading name, physical or postal address, email and phone. Registered companies must show the company name and CIPC registration number on invoices (Companies Act, section 32).
3. Your client's details: their name or company name and address. For VAT registered clients, their VAT number too.
4. A unique invoice number that runs in sequence, for example INV-0042. Never reuse or skip numbers.
5. The invoice date and the due date (or payment terms such as "Due within 7 days").
6. Line items: a clear description, quantity, unit price and line total for each product or service.
7. Subtotal, VAT (if any) and the total due in South African Rand.
8. Banking details so the client can pay by EFT: bank, account name, account number, branch code and a payment reference.
9. Notes: late payment terms, a thank-you, or a reminder that goods remain your property until paid.

Step 1: Set up your business details once

Decide how your business will appear on every document: logo, trading name, address, VAT number (if registered) and bank account. Doing this once in your invoicing software means every invoice, quotation and statement is consistent, and a consistent invoice is one that gets paid without questions.

Step 2: Number your invoices in sequence

SARS expects invoice numbers to be unique and sequential. A prefix plus a counter (INV-0001, INV-0002) is the simplest scheme. If you issue quotations as well, give them their own series (QUO-0001) so a quotation number is never mistaken for a debt. Read our invoice numbering guide for schemes that scale.

Step 3: Itemise clearly

Vague lines ("Services rendered, R12 000") invite queries and delays. Break the work into what the client agreed to: "Website design, 3 pages" or "Plumbing call-out, 2 hours". If the work came from a quotation, the line items should match the quotation exactly; this is why InvoiceWriteNow converts an accepted quotation into an invoice with one click.

Step 4: Handle VAT correctly

If you are not registered for VAT, do not charge it and do not call the document a tax invoice. If you are registered, the document must meet the tax invoice requirements in section 20 of the VAT Act: the words "Tax Invoice", your VAT number, the VAT amount (or a statement that the price includes VAT at 15%), and for invoices over R5 000 the client's name, address and VAT number. Our tax invoice requirements guide has the full checklist.

Step 5: State payment terms and make paying easy

Short terms get paid sooner. "Due on receipt" or "Due within 7 days" is normal for freelancers and trades; 30 days is common with larger companies. Show your banking details and ask for the invoice number as the payment reference so you can match the deposit. See invoice payment terms explained.

Step 6: Send it as a PDF and keep a copy

Send a PDF, not an editable document, and keep a copy for at least five years (SARS record-keeping requirement). Sending from your own email address, with the PDF attached, is the most reliable way to land in the client's inbox rather than a spam folder.

Common mistakes

• Charging VAT without being registered (an offence) or forgetting to add it when you are.
• Reusing invoice numbers after deleting a draft. Cancel the invoice instead so the sequence stays intact.
• Leaving out a due date, which makes "overdue" impossible to argue.
• Using a Word document with formulas typed by hand; totals drift and look unprofessional.
• Not following up. Most late payments are simply forgotten. A friendly reminder on the due date fixes most of them.