Requirements for a valid tax invoices (SARS)

Here are SARS's criteria for a valid tax invoice. As a business in South Africa that is registered for VAT, you need to ensure you comply with these requirements when issuing tax invoices, but also ensure you receive valid tax invoices from your suppliers in order to claim the Value Added Tax (VAT) as Input VAT.

Full Tax Invoice

Invoices where the total exceeds R5,000 (including VAT)

The invoice requires the following:

1. Contains the words “Tax Invoice”, “VAT Invoice” or “Invoice”

2. Name, address and VAT registration number of the supplier

3. Name, address and where the recipient is a vendor, the recipient’s VAT registration number

4. Serial number and date of issue of invoice

5. Accurate description of goods and /or services (indicating where applicable that the goods are second-hand goods)

6. Quantity or volume of goods or services supplied

7. Value of the supply, the amount of tax charged and the consideration of the supply (value and the tax)

Note: all seven criteria must be met for the invoice to meet the requirements of a Tax Invoice

Abridged Tax Invoice

Invoices where the total is between R50 and R4,999 (including VAT)

1. Contains the words “Tax Invoice”, “VAT Invoice” or “Invoice”

2. Name, address and VAT registration number of the supplier

3. Serial number and date of issue of invoice

4. Accurate description of goods and /or services

5. Value of the supply, the amount of tax charged and the consideration of the supply (value and the tax)

Note: all five criteria must be met for the invoice to meet the requirements of an abridged Tax Invoice