Four rules you must know before you issuing your next tax invoice
It might be standard practice for your company to issue both a physical tax invoice and an electronic tax invoice to clients, but doing so is a criminal offence! Lenell Hattingh, FSP Business's online product manager, explains the five things you need to do to avoid SARS slapping you with an R80 000 fine when sending out an electronic tax invoice.
Nowadays, it's common practice for companies to send their tax invoices
by email. And in most cases, they'll probably send the tax invoice
by mail as well. But doing this will land you in hot water with SARS
. They deem this practice illegal because essentially you're issuing more than one tax invoice
for an item or service rendered.
Don't get caught in that trap – make sure you adhere to these four rules for issuing electronic tax invoices
Before issuing an electronic tax invoice, your client must agree in writing that he's willing to receive tax invoices from you in this format. SARS requires you to keep record of this written confirmation for five years.
When issuing electronic tax invoices, debit notes and credit notes, you must include the word 'copy' or 'computer-generated copy tax invoice' on any printed tax invoice you send your client.
You must ensure your electronic tax invoices are encrypted with 128-bit encryption technology. To do this, simply send them in pdf format. This makes it impossible for the receiver to tamper alter the tax invoice in any way.
SARS requires you to keep all electronic tax invoices in a readable and encrypted form for five years from the date of the supply.
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For more rules about tax invoices, read: