HomeHome SearchSearch MenuMenu Our productsOur products

What's the difference between full and abridged tax invoices?

by , 20 June 2014
There's a lot of confusion regarding tax invoices. For example, some Vat vendors don't know the difference between full and abridged tax invoices.

As a result, they get harsh SARS penalties. What's more... They lose out on input tax claims.

Don't take that risk.

Read on to discover the difference between full and abridged tax invoices.

There's a BIG difference between full and abridged tax invoices

You must issue a full tax invoice for supplies in excess of R3 000. If the consideration for the supply is less than R3 000, you can get away with issuing an abridged tax invoice.

Take a look at the differences below.

*********** Best seller *************

Confidential: 13 Vat secrets SARS doesn't want us to publish

These secrets will give you insider information on how to red-flag potential Vat risk areas, before the SARS team does.

Click here to find out what they are.
 

*********************************

This useful checklist gives a simple breakdown of the differences between the two types on invoice

Full tax invoice: Issued for consideration of R3 000 or more

  1. The words 'tax invoice' must be in a prominent place.
  2.  It must have the name, address and Vat registration number of the supplier.
  3. It must have the name, address and Vat registration number of the recipient.
  4. Serial number and date of issue.
  5. Have an accurate description of goods or service
  6. Quantity or mass (weight) of goods or services supplied
  7. Have the price and Vat.

Now take a look at an abridged tax invoice issued for consideration of less than R3 000

  1. The words 'tax invoice' must be in a prominent place
  2. It must have the name, address and Vat registration number of the supplier.
  3. It DOESN'T have to have the name, address and Vat registration number of the recipient.
  4. It must have a serial number and date of issue.
  5. It must have a description of the goods.
  6. It DOESN'T reflect the quantity or mass (weight) of goods or services supplied.
  7. It has the price and Vat.

Now that you know the differences, we have a word of advice when it comes to tax  invoices.

*********** Advertisement ************

Do you know the 13 Vat review secrets SARS doesn't want you to know about?

Neither do most people.

Click here to find out what they are.

**************************************

It's a good idea to always issue full tax invoices

Experts behind the Practical Vat Loose Leaf Service say, in practice, many vendors opt to issue full tax invoices irrespective of the consideration of the supply.

They recommend you adopt this practice as a working policy so you never make unintentional errors and fail to issue valid tax invoices for each and every transaction.




Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>