SARS will accept an alternative to tax invoices in these three instances
While SARS has made it very clear what details need to appear on a tax invoice, businesses often experience difficulties because of conflicting information given by the various SARS offices as to what's acceptable and what isn't. Luckily, your business can avoid this. Here are three instances where SARS will accept an alternative to a tax invoice.
Take NO chances when it comes to tax invoices. After all, this is an important link in the tax/Vat chain and you must get it right to avoid penalties.
To ensure you're always compliant, 'the best strategy is to stick to the letter of the law,' says the Practical Tax Loose Leaf Service.
So do you know what's acceptable and what isn't when it comes to tax invoices?
Do you know when a tax invoice isn't necessary?
According to the Loose Leaf, a tax invoice isn't necessary for certain transactions where you have other records available to establish the details of the transaction.
This happens where:
The transactions are progressive supplies made by your company in terms of a written contract, which provides for regular payment of a determined amount. For example, the debit orders that go off your bank account every month, your business's short-term insurance policy and your lease agreement.
You have a written contract agreement as well as proof of regular payments. For example, a bank statement is sufficient proof of payment.
You have a written contract that contains the name, address and Vat number of the supplier of the service and the name, address of the recipient.
Knowing what's acceptable and what isn't when it comes to tax invoices will ensure you're always compliant with the Vat Act.
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