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Ten details your tax invoice must contain to be valid

by , 22 May 2015
Today we're talking about how SARS provides Binding General Rulings (BGRs) to help Vat vendors understand the way SARS wants things done. This is to standardise the way you and other Vat vendors deal with SARS.

Note that the BGR we're interested in right now is SARS' details on tax invoices.

BGR21 shows you how to ensure your tax invoices, credit and debit notes contain the correct details, so you don't get into trouble with the law!

Keep in mind that there's no end-date for this BGR, so you can use it indefinitely, or until SARS withdraws it.

Make sure you stick to the following requirements and to get your details on invoices right every single time.

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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.


Here are the ten details a valid tax invoice must contain

If you issue invoices for more than R5 000, they must contain the following (Section 20(4) of the Vat Act):

1 - The words "tax invoice";

2 - Your name, address and Vat number as the supplier;

3 - The client or recipient's name and address;

4 - If the recipient is a registered vendor, include their Vat registration number;

5 - An individual serial number;

6 - The date when you issue the tax invoice;

7 - Full and proper description of the goods (indicating, where applicable, that the goods are second-hand goods) or services supplied;

8 - The quantity or volume of the goods or services supplied;

9 - Either:
• The amount of the supply, the Vat, and the total;
• The total amount of the supply, including Vat, and a statement on the invoice that says that Vat is included; and

10 - The tax invoice must be in "rands". But if it's a zero-rated export, then the invoice doesn't have to be in Rands. You have the option to use a foreign currency.

Note that if the total invoice amount (including Vat) is less than R5 000, you can issue an abridged tax invoice. This tax invoice must contain all the details of a full tax invoice, minus the buyer's name, address and Vat number.

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