If you are registered for VAT in South Africa, your invoices are not just a request for payment. They are the document your client uses to claim back the VAT they paid you. That is why SARS sets out what a tax invoice must show, and why business clients will send back one that is missing something.
Here is what the rules ask for in plain terms. The amounts below were correct at the time of writing; check SARS for the current figures before you rely on them.
First: do you need a tax invoice at all?
Only VAT vendors issue tax invoices. If you are not registered for VAT, you send an ordinary invoice: do not add VAT, do not show a VAT number, and do not use the words “Tax invoice”. Charging VAT when you are not registered is not allowed.
If you are registered, you generally have to issue a tax invoice within 21 days of making the supply, whether or not the client asks for one.
Full tax invoice (supplies over R5,000)
When the total including VAT is more than R5,000, the invoice must show:
- The words “Tax invoice” in a prominent place.
- Your name, address and VAT registration number.
- Your client’s name and address, and their VAT number if they are a vendor.
- A serial number and the date the invoice was issued.
- A full description of the goods or services.
- The quantity or volume supplied.
- The value of the supply, the VAT charged and the total, or the total with a statement that it includes VAT at 15%.
Abbreviated tax invoice (R5,000 or less)
For smaller supplies the rules are lighter. You still need the words “Tax invoice”, your name, address and VAT number, a serial number and date, a description of the supply, and the VAT amount (or a statement that the price includes VAT at 15%). The client’s details are not required, though adding them never hurts.
For very small amounts, R50 or less, no tax invoice is needed, but keep a record such as a till slip.
A good habit: always issue the full version
The simplest way to stay safe is to treat every invoice as a full tax invoice. If your client details, VAT number and quantities are always there, you never have to think about which threshold applies, and the client never sends it back.
Mistakes that get invoices rejected
- Missing or wrong VAT number, yours or the client’s.
- VAT folded into one total with no statement of the rate.
- Two invoices with the same number, or numbers that jump around.
- A vague description such as “services rendered” with no detail.
- Calling it a tax invoice when you are not registered for VAT.
Changing an invoice after it is sent
Do not edit and resend an invoice with the same number. If the amount changes, issue a credit note or a debit note that refers to the original invoice. It keeps your records and your client’s in step.
Foreign clients
Services supplied to clients outside South Africa may qualify for VAT at 0% in some cases, but the rules depend on the service and where it is used. Ask your accountant or SARS before you zero-rate anything.
Keep your copies
Keep a copy of every tax invoice, credit note and debit note. SARS generally expects records to be kept for five years.
This article is general guidance, not tax advice. Wizard Invoice lets you add your VAT number, show VAT as its own line at 15% and download a clean PDF, with invoice numbers kept in order for you.
