What must be on a tax invoice
If you are a registered VAT vendor, your customers can only claim back the VAT you charge if your tax invoice has the right details. Here is the checklist, from section 20 of the VAT Act and SARS's VAT 404 guide.
1 point we are still verifying
- VAT 404 is inconsistent about exactly R5 000 ("more than" in the text, "or more" in the table). We treat R5 000 and below as abridged, per s20(5); confirm against a current consolidation of the VAT Act.
General information, not tax advice. KayaHustle is not SARS. Check the VAT 404 guide or ask a registered tax practitioner if you are unsure.
Which invoice do you need?
| Situation | Document |
|---|---|
| Not registered for VAT | Ordinary invoice, no VAT |
| VAT vendor, total over R5 000 (incl. VAT) | Full tax invoice |
| VAT vendor, total R50 to R5 000 | Abridged tax invoice (or a full one) |
| VAT vendor, total under R50 | No tax invoice needed; keep a till slip or record |
Full tax invoice (over R5 000)
- The words "tax invoice", "VAT invoice" or "invoice"
- Your name, address and VAT registration number
- The customer's name, address and VAT registration number (if registered)
- A serial number and the date of issue
- A full and proper description of the goods or services
- The quantity or volume supplied
- The price and the VAT, using one of SARS's three approved methods
Abridged tax invoice (R5 000 or less)
- The words "tax invoice", "VAT invoice" or "invoice"
- Your name, address and VAT registration number
- A serial number and the date of issue
- A full and proper description of the goods or services
- The price and the VAT, using one of SARS's three approved methods
A zero-rated supply always needs a full tax invoice, whatever the amount.
Showing the VAT
SARS accepts three ways: the price excluding VAT, the VAT and the total; or the total including VAT with the VAT amount; or the total with a statement that it includes VAT at 15%. Our invoice generator uses the first.
Time limits and records
- Issue the tax invoice within 21 days of the supply.
- Keep copies for at least 5 years.
- Number invoices in sequence so each number is used once.
Frequently asked questions
Can I call my invoice a tax invoice if I am not VAT registered?
No. Only a registered VAT vendor may issue a tax invoice or charge VAT. Issue an ordinary invoice with no VAT and no VAT number.
What if I lose a tax invoice I issued?
You may issue a copy clearly marked "copy". You may not issue a second original.
Do I need a tax invoice for a sale under R50?
No tax invoice is needed when the total is under R50, but you still need a record of the sale, such as a till slip.