A full tax invoice (supplies over R5 000) must show the words "Tax Invoice", the supplier's name, address and VAT number, the recipient's name, address and VAT number, a unique serial number and date, a description and quantity of what was supplied, and the value, the VAT charged and the total, all in Rand. Supplies of R5 000 or less may use an abridged tax invoice that leaves out the recipient's details and quantities.
Why a valid tax invoice matters
Your VAT registered clients can only claim input VAT on a document that meets the requirements of section 20 of the Value-Added Tax Act. An invoice that misses a required field is not a tax invoice, and a client who is audited will come back to you for a corrected one. Getting it right the first time keeps clients happy and keeps you off SARS's radar.
Full tax invoice (consideration above R5 000)
- The words "Tax Invoice", "VAT Invoice" or "Invoice".
- The name, address and VAT registration number of the supplier.
- The name, address and VAT registration number of the recipient (VAT number only if the recipient is a registered vendor).
- An individual serialised number and the date of issue.
- A full and proper description of the goods or services (and a note if goods are second-hand).
- The quantity or volume of the goods or services supplied.
- Either the value of the supply, the VAT charged and the total, or the total consideration with a statement that it includes VAT at the standard rate (15%).
Abridged tax invoice (R5 000 or less)
For smaller supplies an abridged tax invoice is acceptable. It must still show the words "Tax Invoice", the supplier's name, address and VAT number, a serial number and date, a description of the goods or services, and the consideration with the VAT amount or a statement that VAT is included. The recipient's details and quantities may be left out.
Supplies of R50 or less
No tax invoice is required for a supply of R50 or less, but the vendor must keep a record (a till slip, receipt or similar) to support the input tax claim.
Other rules worth knowing
- 21 days: a vendor must issue a tax invoice within 21 days of the supply.
- Rand only: a tax invoice must be in South African Rand, except for zero-rated supplies (for example exported services), which may be in a foreign currency.
- One invoice per supply: never issue two tax invoices for the same supply. If you need to reissue, mark the original as cancelled and reference it on the new one, or issue a credit note.
- Electronic invoices are valid. A PDF emailed to the client is fine; the same content rules apply.
- Credit and debit notes have their own requirements (section 21) and must reference the original tax invoice.
- Record keeping: keep tax invoices, credit notes and debit notes for five years.
VAT registration thresholds
| Situation | Rule |
|---|---|
| Taxable turnover above R1 million in 12 months | Compulsory registration |
| Taxable turnover above R50 000 in 12 months | Voluntary registration allowed |
| Not registered | You may not charge VAT or issue a tax invoice |
| Standard VAT rate | 15% |
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