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SARS VAT Invoicing

SARS-Compliant VAT Invoice Requirements

The mandatory fields for a South African tax invoice, the 15% standard rate, the difference between full and abridged tax invoices, and SARS record-keeping rules.

South Africa standard VAT rate
15%
In effect since 1 April 2018, under the Value-Added Tax Act 89 of 1991.

What is a SARS tax invoice?

Under the Value-Added Tax Act 89 of 1991, a VAT vendor (a business registered for VAT) must issue a "tax invoice" for every taxable supply it makes. The term "tax invoice" is a defined term in the Act and has specific meaning: it is a document issued by a VAT vendor that complies with the content requirements set out in sections 20 and 21 of the VAT Act.

A regular invoice issued by a non-VAT-registered business is simply an invoice. It does not need to meet the tax invoice requirements, and it must not bear the words "tax invoice" or display a VAT amount, because the issuer is not authorised to charge VAT.

The distinction matters both to the supplier (who must issue the correct document type) and to the recipient (who can only claim an input tax deduction against a valid tax invoice).

Full tax invoice: required fields

A full tax invoice is required for taxable supplies with a value exceeding R5,000 (VAT-inclusive). It must contain the following information:

Abridged tax invoice: required fields

An abridged tax invoice may be used for taxable supplies with a value of between R50 and R5,000 (VAT-inclusive). It requires fewer fields than a full tax invoice. The required fields are:

An abridged tax invoice does not need to show the recipient's name and address, an invoice number, or unit prices. A till slip from a VAT-registered retailer is a common example.

The 15% standard rate and other VAT rates

South Africa's standard VAT rate of 15% applies to the majority of goods and services supplied by VAT vendors. The rate was increased from 14% to 15% on 1 April 2018.

Zero-rated supplies (taxed at 0%) are listed in Schedule 2 of the VAT Act and include: brown bread, maize meal, samp, mealie rice, dried mealies, dried beans, lentils, pilchards or sardines in tins or cans, milk powder, dairy powder blend, rice, vegetables, fruit, vegetable and fruit juices, edible legumes and pulses, eggs, and cooking oil. Exports of goods and certain international services are also zero-rated.

Exempt supplies are listed in Schedule 1 and include: financial services (broadly defined), certain educational services, residential accommodation (subject to conditions), and certain transport services.

Time of supply (tax point)

SARS requires you to account for output VAT in the VAT period in which the time of supply occurs. The time of supply is the earlier of: the date on which goods are delivered or services are performed; the date on which a tax invoice is issued; or the date on which payment is received. Because issuing an invoice can trigger the time of supply, the timing of your invoices affects which VAT period the VAT falls into.

A tax invoice must be issued within 21 days of the time of supply. Failure to issue a tax invoice within this period is a contravention of the VAT Act.

Record keeping

SARS requires VAT vendors to retain records for at least five years from the end of the tax period to which they relate. Records include all tax invoices issued and received, debit notes, credit notes, bank statements, and any other documents used to support the VAT return. Records may be kept in electronic form provided they are readily accessible and can be reproduced in a legible format if requested by SARS.

Tidybill stores all invoices permanently and exports them in PDF format. Your invoice history is available at any time, which supports both your SARS compliance and your provisional tax calculations.

For more on South African invoicing, see the tax invoices vs invoices guide and the freelance invoicing guide.

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SARS VAT invoice questions

What must a SARS tax invoice include?
A full SARS tax invoice must include: the words "tax invoice" prominently displayed; the supplier's name, address, and VAT registration number; a unique sequential invoice number; the date of issue; the recipient's name, address, and VAT number; a description of goods or services; quantity and unit price; the VAT rate; the VAT amount; and the total including VAT. For supplies over R5,000, a full tax invoice is required.
What is the VAT rate in South Africa?
The standard VAT rate in South Africa is 15%. This rate has been in effect since 1 April 2018. Zero-rated supplies (taxed at 0%) include certain basic foodstuffs, exported goods, and international transport services. Some supplies are VAT-exempt, including certain financial services and residential letting.
What is an abridged tax invoice?
An abridged tax invoice is a simplified version that can be used for taxable supplies of between R50 and R5,000 (inclusive of VAT). It requires fewer fields: the words "tax invoice", the supplier's name, address, and VAT registration number, the date of issue, a description of the supply, the VAT-inclusive price, and either the VAT rate and VAT amount, or a statement that the amount includes VAT at the applicable rate.
When must a VAT invoice be issued?
Under the VAT Act, a tax invoice must be issued within 21 days of the date of supply. The date of supply (time of supply) is typically the earlier of the date goods are delivered or services are performed, the date a tax invoice is issued, or the date payment is received.
How long must I keep tax invoices in South Africa?
SARS requires VAT vendors to retain all tax invoices, debit notes, credit notes, and other supporting documents for at least five years from the date of the relevant tax period. Records may be kept in electronic or paper format, but must be readily available for inspection by SARS.