Valid Tax Invoices requirements as per SARS requirements

While doing the processing for our clients, we see many vendors submitting invoices that don’t comply with the VAT Act.

SARS regularly does review’s of VAT returns submitted, should a invoice be submitted that does not meet the requirements, SARS will disallow the VAT for that invoice and potentially raise a penalty.

Below is a summary of the information that is required, which depends on the value of the tax invoice. The below value’s are based on the amount including VAT.

Tax Invoice for less than R50

A tax invoice is not required, however a document such as a till slip or sales docket indicating the VAT charged by the supplier will be required to verify the VAT claimed.

Tax Invoice for more than R50 but less than R5000 (Abridged Tax Invoice)

An abridged Tax Invoice will be required, and must include the following:

  • Contains the words “Tax Invoice”, “VAT Invoice” or “Invoice”
  • Name, address and VAT registration number of the supplier
  • Invoice number and date of issue of invoice
  • Accurate description of goods and/or services
  • Value of the supply, the amount of tax charged and the consideration of the supply

Tax Invoice for more than R5000 (Full Tax Invoice)

A full Tax Invoice will be required, and must include the following:

  • Contains the words “Tax Invoice”, “VAT Invoice” or “Invoice”
  • Name, address and VAT registration number of the supplier
  • Name, address and where the recipient is a vendor, the recipient’s VAT registration
    number
  • Invoice number and date of issue of invoice
  • Accurate description of goods and /or services (indicating where applicable that the
    goods are second hand goods)
  • Quantity or volume of goods or services supplied
  • Value of the supply, the amount of tax charged and the consideration of the supply
By | 2018-02-19T13:11:28+00:00 October 22nd, 2017|Blog|