You need to meet SARS requirements for invoicing – even when you're creating the invoice yourself
You have to make sure the invoice:
- Is in South African currency;
- Has the words "tax invoice" in a prominent place;
- Has the name, address and Vat registration number of your supplier;
- Has your name, address and location;
- Has your Vat registration number;
- Has an individual serialised number and the date you issued the tax invoice;
- Has a full and proper description of the goods or services supplied. If the goods are second-hand, put this on the invoice;
- Has the quantity or volume of the goods or services supplied;
- Has either:
• The value of the supply, the amount of tax charged and the total for the supply; or
• Shows the Vat inclusive amount.
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Get your tax invoices right the first time!
Do you know:
· What a valid Tax Invoice looks like;
· What information it must have; or
· When you need a full tax invoice?
Find out here so SARS doesn't deny your input tax claim due to an invalid tax invoice…
And since now you know SARS' requirements for self-invoicing, let's have a look at the requirements for how to issue debit or credit notes.
Checklist: What to include in a debit note
- The words "debit note" in a prominent place;
- The name, address and Vat registration number of your supplier;
- Your name, address and Vat registration number, except if the debit note is for second-hand goods;
- The date when you issued the debit note;
- The amount of the supply that was increased and the amount of the additional tax; or
- The amount of Vat increase if the supply included Vat;
- A brief explanation for issuing the debit note; and - Identifying information for the transaction the debit note refers to.
Three steps to follow once youʼve created your invoice, credit or debit note
Once you've created your invoice, credit or debit note, make sure you follow these three steps:
Step #1: Give your supplier a copy of the tax invoice, credit or debit note and keep a copy of it;
Step #2: Issue the tax invoice within 21 days of the date of the supply being made;
Step #3: Keep a copy of the recipient-created tax invoice, credit or debit note for the period of five years.
If you can't comply with these SARS requirements, all is not lost! You can still apply in writing for a ruling giving approval to issue recipient-created tax invoices, credit and debit notes by filling in the VAT301 form.