VAT Invoices - What are the requirements for a valid VAT Invoice?

You just spent a lot of money to upgrade your IT infrastructure, and you want to claim the input VAT on the additions. SARS conducts and audit, and the input VAT is denied. Why? The invoice from your IT provider did not meet the requirements of a valid VAT invoice.

So what should be on a valid VAT invoice, and when should it be issued?

A VAT invoice must be issued within 21 days after the transaction.

The VAT Act prescribes that a business issues a full VAT invoice when the value of the taxable supply exceeds R5,000 and an abridged tax invoice when the value of the taxable supply was R5,000 or less. If the value of the taxable supply is less than R50, a VAT invoice is not required. SARS may require a document such as a till slip or receipt to verify the amount of the input tax.

A full VAT invoice should include the following:

• The invoice should contain the words “VAT Invoice”, “Tax Invoice” or “Invoice”
• The name, address and VAT number of the supplier.
• The name, address and VAT number of the customer
• A serialised invoice number
• The date of the transaction
• An accurate description of the goods or services (the supply)
• The value of the supply, the amount of VAT and the total value of the supply.

An abridged tax invoice should include the following:

• The invoice should contain the words “VAT Invoice”, “Tax Invoice” or “Invoice”
• The name address and VAT number of the supplier
• A serialised invoice number
• The date of the transaction
• An accurate description of the goods or services (the supply)
• The value of the supply, the amount of the tax and the total value of the supply.

The tax invoices should include all of the items listed above to meet the requirements of a valid tax or abridged invoice.

SARS has issued a handy checklist which can be accessed here.