What must a South African VAT tax invoice contain?
The details a VAT vendor must show on a full tax invoice, when an abridged tax invoice is enough, and when the invoice must be issued.
A full tax invoice shows seven things: the words 'Tax Invoice', 'VAT Invoice' or 'Invoice'; the supplier's name, address and VAT number; the recipient's name and address, plus their VAT number where they are a vendor; a serial number and the date of issue; a description of the goods or services; the quantity or volume; and the value of the supply, the tax charged and the total. A vendor must issue the tax invoice within 21 days of the supply. For supplies of R5,000 or less, an abridged tax invoice may be used. It leaves out the recipient's details and the quantity. This follows section 20 of the VAT Act and the SARS invoice checklist. Without a valid tax invoice, a customer who is a vendor may not be able to claim input tax.
- Full tax invoice: seven required details, including the recipient's name and address.
- Abridged tax invoice: shorter, for supplies above R50 and up to R5,000.
- Issue the tax invoice within 21 days of the supply.
- A missing detail can cost your customer the input tax claim.
How it works
Label the document. Put the words 'Tax Invoice', 'VAT Invoice' or 'Invoice' on it.
Show the supplier details. Include your name, address and VAT registration number.
Show the recipient details on a full tax invoice. Include the recipient's name and address, and their VAT number where the recipient is a vendor.
Add a serial number and date. Each invoice needs a unique serial number and its date of issue.
Describe the supply. Give an accurate description of the goods or services and the quantity or volume. For second-hand goods, indicate that they are second-hand.
State the amounts. Show the value of the supply, the VAT charged and the total consideration. Use the rate that applies to each line: 15%, 0% for zero-rated supplies, or no VAT for exempt supplies.
Choose full or abridged. For a supply above R5,000 use a full tax invoice. Between R50 and R5,000 you may use an abridged one with the supplier details, label, serial number, date, description and amounts.
Legal references
- Value-Added Tax Act 89 of 1991, section 20 - tax invoices, including the abridged tax invoice.
- SARS Checklist: Value-Added Tax (VAT) Invoices - full and abridged tax invoice criteria.
- SARS VAT 404 Guide for Vendors - timing and content of tax invoices.
Frequently asked questions
When can I issue an abridged tax invoice?
When the supply, including VAT, is above R50 and not more than R5,000. The abridged invoice omits the recipient's details and the quantity. You may always issue a full tax invoice instead.
How long do I have to issue a tax invoice?
A vendor must issue a tax invoice within 21 days of making the supply, according to SARS guidance.
Does the word 'Tax Invoice' have to appear?
The SARS checklist accepts 'Tax Invoice', 'VAT Invoice' or 'Invoice'.
Does 4invoices make a compliant tax invoice?
4invoices lets you build an invoice with your details, your customer's details and the tax rate on each line, and download it as a PDF. It does not check that your invoice meets the VAT Act, does not connect to SARS and does not guarantee compliance. You remain responsible for the content, so check it against the SARS checklist.