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Revealed: The only time where you'll be allowed to claim input tax without a tax invoice

by , 09 May 2014
There are times when the recipient doesn't automatically get a tax invoice. This applies in cases of monthly rent payments for business premises where the lease agreement is in writing or with a short-term insurance contract. In these cases, the original agreement is enough for you to claim your input tax and you don't need a tax invoice. The only catch is your agreement must have the following three details...


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In cases where you don't automatically issue tax invoices to the recipient, make sure you have an agreement that contains these three details

The Practical Vat Loose Leaf Service says if you don't issue a tax invoice to the recipient, an original agreement that contains the following three things (details that a tax invoice would have) is enough for you to claim input tax:

  1. Vat numbers of both the supplier and the recipient;
  2. Names and addresses of the parties; and
  3. Details and amounts of the supply.

This is the only time you'll be allowed to claim input tax without a tax invoice. Under normal circumstances, you need to ensure you issue and receive correct tax invoices.

Keep reading to find out when you'll need a tax invoice….


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You'll need a tax invoice in the following instances so you can make your input tax claims

  • If the transaction is for more than R50
  • If the transaction is between R50 and R5 000
  • You must issue a full tax invoice for any zero-rated supply, even if the value of the supply is less than R5 000

There are four more instances when you need a tax invoice. Check out the Practical Vat Loose Leaf Service to get the full list.

The bottom line: You need proof to substantiate your input tax claims. In cases when a tax invoice isn't automatically issued, an agreement that contains the details we've outlined is all you need to support your claims.

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