VAT Invoices – Are you compliant?

We have had several queries regarding the rules for a valid/compliant tax invoice and summaries as follows:

Where the amount of consideration for a supply is:

Document

 

Contents of tax invoice

 

> R3,000

Tax invoice

All requirements as contained in section 20.

> R50 but < R3,000

Abridged tax invoice

Name, address, VAT number of recipient is not required. Quantity and volume of goods not required.

< R50

Proof of payment document

No tax invoice, but document e.g. receipt of payments to verify input claimable.

Any zero-rated supply (Irrespective of value)

Tax invoice

All requirements as contained in section 20.

A valid tax invoice must contain the following information:

  • The words ‘tax invoice’ in a prominent place
  • The name, address and VAT registration number of the supplier
  • The name, address and VAT registration number of the recipient
  • An individual serialised number
  • The date upon which the invoice is issued
  • A description of the goods or services supplied
  • The quantity or volume of the goods or services supplied
  • Either the value of the supply, plus tax, and the consideration, or the consideration for the supply and a statement that it includes tax charged and the rate at which the tax is charged (0% or 14%).
  • If the invoice is for R3,000 or more, the trading name and address of the recipient as well as its VAT registration number must be included on the invoice.
  • The Commissioner can give permission for some information to be omitted from a tax invoice or direct that a tax invoice is not required to be issued.
  • A tax invoice must be stated in South African currency unless it is a zero-rated supply.

A vendor is liable to issue a tax invoice to a recipient, within 21 days of the date of the supply whether requested to do so or not.

Where a tax invoice has been issued and the supply is cancelled or fundamentally altered or varied, or the amount has been altered, the vendor must issue a credit note or a debit note reflecting the changes.

Should you require any further information, please do not hesitate to contact us.

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