Sending a neat invoice helps you get paid. If you are registered for VAT, the document also needs the details SARS expects from a valid tax invoice.

This guide is a practical starting point. Your accountant or tax practitioner should advise you about unusual transactions, zero-rated supplies, exports and industry-specific rules.

First decide which invoice you need

SARS distinguishes between a full and an abridged tax invoice. Its published guidance says a full tax invoice is required when the consideration is more than R5,000. An abridged tax invoice may be used when it is R5,000 or less. For a supply of R50 or less, a tax invoice is generally not required, although a till slip or sales docket showing the VAT charged may still be needed as evidence.

Full tax invoice checklist

For a full tax invoice, check that the document contains:

  • the words Tax Invoice, VAT Invoice or Invoice;
  • your business name, address and VAT registration number;
  • the customer’s name and address and, where the recipient is a vendor, its VAT registration number;
  • a unique serial number and the date of issue;
  • an accurate description of the goods or services;
  • the quantity or volume supplied; and
  • the value of the supply, VAT charged and total consideration.

The details should describe the real transaction. A vague line such as “services rendered” may be harder for your customer to understand and reconcile than a clear description of the work and period covered.

What changes for an abridged tax invoice?

An abridged invoice needs fewer customer details, but it still needs the supplier’s identifying information, a serial number, issue date, a proper description and the price and VAT information. Check the latest SARS guidance before relying on the shorter format.

Show VAT clearly

SARS allows approved ways to present the price and VAT. For example, you can show the value excluding VAT, the VAT amount and the VAT-inclusive total. Another permitted approach is to show the total consideration and state that VAT is included at the applicable rate.

Whichever presentation you use, apply it consistently. Confirm that your VAT number, tax treatment and customer details are correct before issuing the document.

A useful pre-send routine

Before you send an invoice:

  1. Confirm the legal business and customer details.
  2. Check the invoice number and issue date.
  3. Review each description, quantity, price and discount.
  4. Check the VAT treatment and totals.
  5. Add clear payment terms and banking or payment instructions.
  6. Save the issued PDF and keep the supporting records.

Invoice Vault can help format the document and preserve its totals, but the business remains responsible for choosing the correct tax treatment and supplying accurate information.

This article is general information, not tax advice. SARS guidance and legislation can change; check the linked primary source or consult a registered tax practitioner.