14/11/2025
Value Added Tax - The importance of a valid "tax Invoice"
South African VAT system allows a vendor to deduct input tax incured on business expenses from output tax of supplies made by the business. A valid tax invoice is the cornestone of this system.
Without a proper valid tax invoice a busniess cannot deduct input tax on business expenses.
Section 20 (4) of the Value-Added Tax prescribes that an abridged tax invoice (supply less than R5 000.00) must contain the following:
1. Contains the words “Tax Invoice”, “VAT Invoice” or “Invoice”
2. Name, address and VAT registration number of the supplier
3. Serial number and date of issue of invoice
4. Accurate description of goods and /or services
5. Value of the supply, the amount of tax charged and the consideration of the supply
Section 20 (4) of the Value-Added Tax prescribes that a full the tax invoice(supply exceeding R5 000.00) must contain the following:
1. Contains the words “Tax Invoice”, “VAT Invoice” or “Invoice”
2. Name, address and VAT registration number of the supplier
3. Name, address and where the recipient is a vendor, the recipient’s VAT registration number
4. Serial number and date of issue of invoice
5. Accurate description of goods and /or services
6. Quantity or volume of goods or services supplied
7. Value of the supply, the amount of tax charged and the consideration of the supply
To avoid disagreement or dispute with SARS, get in touch with us for consulattion and valid tax invoice deisgn
