Going freelance in South Africa means you are now the accounts department. The good news is that a clear invoice and a few habits cover most of it. Here is a practical guide, from your first invoice to clients paying from overseas.
What to put on your invoice
- Your name or business name, email and phone number.
- Your client’s name, company and address.
- A unique invoice number, kept in order, and the date.
- A clear description of the work, with quantities and rates.
- The total in rand (or the currency you agreed), and the due date.
- Your banking details: bank, account holder, account number, branch code and a payment reference.
Ask the client to use the invoice number as their payment reference. It makes matching EFT payments to invoices painless.
Should you add VAT?
Only if you are registered as a VAT vendor. Most freelancers start out unregistered, which means no VAT line and no “Tax invoice” heading. Registration becomes compulsory once your taxable turnover passes the SARS threshold, and you can choose to register voluntarily before that. Once registered, you charge VAT at 15% and your invoices must meet the tax invoice rules.
Getting paid locally
- EFT is still the standard for business clients. Put your banking details on every invoice.
- Card payment links from providers such as Yoco or PayFast help with private clients who prefer to pay by card.
- Whatever you use, put the payment method on the invoice itself, so nobody has to ask.
Getting paid by overseas clients
Invoice international clients in their currency, such as USD, GBP or EUR, and say so clearly on the invoice. Services such as Wise, Payoneer or PayPal can make receiving foreign payments cheaper than a direct SWIFT transfer, so compare the fees and exchange rates.
When foreign money arrives in your South African account, your bank may ask you to confirm what the payment is for. Keep the matching invoice handy; it is the simplest proof.
Payment terms that work
- Set a due date: 7 or 14 days is common for freelance work.
- Ask for a deposit of 30 to 50% before starting bigger projects.
- Agree any late fee in writing up front, and repeat it on the invoice.
- Send the invoice the day the work is approved. Late invoices get paid late.
Tax habits that save you stress
If your income is not from a salary, you are likely to be a provisional taxpayer, which usually means paying tax in advance twice a year rather than all at once. Put a share of every payment aside in a separate account as it comes in, so tax time is a transfer, not a crisis.
Keep every invoice and expense receipt in one place. Your accountant, SARS and your future self will all thank you.
Make it quick
An invoice should take a minute, not an afternoon. Wizard Invoice keeps your details, banking information and rand totals ready, adds VAT if you are registered, and lets you send by email, WhatsApp or a link, then see who has paid.
This article is general guidance, not tax advice. Check with SARS or an accountant for your situation.
