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SARS requirements for self-invoicing: All you need to know about Binding General Rulings

by , 01 June 2015
Let's assume you can't claim your input tax from SARS because your supplier didn't issue you with a tax invoice. What is your solution?

The good news is that you can create your own because you are allowed by the Binding General Ruling, issued by SARS.

Here's how it works:

Here's how you can use self-invoicing to claim input tax

SARS provides Binding General Rulings (BGRs) to help Vat vendors understand the way SARS wants things done.

The BGR we're interested in right now is SARS' selfinvoicing BGR – BGR 21.

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Are there any inaccuracies in your Vat invoices? You may be charged a very high penalty!

If SARS finds inaccuracies, you'll be assessed, held liable to penalties, interest and possibly even additional tax!

Click here to find out how to make sure your Vat invoices are 100% legal.


Make sure you stick to all of SARS' BCR 21 requirements to get your self-invoicing right every time

Self-invoicing is when you, as a registered Vat vendor, issue tax invoices, credit and debit notes yourself, so you can claim input tax. When you do this, you don't have to wait for your supplier to issue an invoice. Businesses generally self-invoice when the amount of the supply can't be established.

When you can self-invoice?

You can self-invoice when you, the recipient:

• Determine the amount payable for the supply of the goods or services; and
• Are in control of determining the quantity or quality of the supply, or are responsible for measuring or testing the goods sold by the supplier

Here's a useful checklist regarding the three SARS requirements for self-invoicing

If you want to self-invoice, make sure you meet these three SARS requirements:

- You're a vendor;
- You have proof of the supplier's Vat registration number;
- You have an agreement with the supplier that he won't issue a tax invoice, credit or debit note for any taxable supply to which the approval applies.

Keep this in mind and you can't go wrong! Remember that it's also one of your responsibilities to stay informed with all new amendments!

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