Results 1 to 10 of 10

Thread: Service providers that do not supply invoices

  1. #1
    Silver Member
    Join Date
    Apr 2011
    Location
    Jhb
    Posts
    276
    Thanks
    105
    Thanked 14 Times in 10 Posts

    Service providers that do not supply invoices

    Hi,

    What are you supposed to do when you make use of a service provider that do not issue invoices? What can you use as support for the expense / asset purchased for record and income tax purposes?

    In the same breath - does a slip / handwritten note / receipt of some sort suffice as a income tax supporting document? I understand that the invoice must comply with the requirements of a tax invoice for VAT purposes - I am referring to income tax in this regard.

    In a world where all service providers have some type of accounting / invoicing system, this would not be a problem. But if you need / want to purchase something for your business from a service provider that is only going to provide you with a slip / receipt that contains minimal information (or maybe no document at all), what do you do?

  2. #2
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,671
    Thanks
    88
    Thanked 544 Times in 460 Posts
    Blog Entries
    1
    A hand written supporting document by you, with the date, amount and from whom you purchased from, and if possible an address or phone number, with a description of the service will suffice. You will not off course be able to reclaim the VAT on this entry. The document must be descriptive in order to be acceptable. SO if you had a gardener cut your grass and you paid him R75.00, you would write his name, date and job description. If possible get his signature as proof.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

  3. #3
    Diamond Member Blurock's Avatar
    Join Date
    May 2010
    Location
    Durban
    Posts
    3,434
    Thanks
    660
    Thanked 765 Times in 630 Posts
    Blog Entries
    1
    I will refuse to pay VAT on a hand written invoice.
    Excellence is not a skill; its an attitude...

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,977
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by Blurock View Post
    I will refuse to pay VAT on a hand written invoice.
    And yet it happens and can be perfectly legitimate. I've had them where there's a company stamp at the top which includes the VAT number - and the VAT number checks out.

    If it meets the requirements, do we have a choice?
    The trouble with opportunity is it normally comes dressed up as work.

  5. #5
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,671
    Thanks
    88
    Thanked 544 Times in 460 Posts
    Blog Entries
    1
    I agree Dave, have a number of suppliers who do that. There is nowhere in the income Tax act that stipulates how the invoice will be made out, only what information is required on a VAT invoice.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

  6. #6
    Diamond Member Blurock's Avatar
    Join Date
    May 2010
    Location
    Durban
    Posts
    3,434
    Thanks
    660
    Thanked 765 Times in 630 Posts
    Blog Entries
    1
    I will accept a "croxley" invoice (book) where a small business does not have printed stationery. Company stamp, VAT number and everything checks out. But if it is only a piece of paper from someone I do not know...
    Excellence is not a skill; its an attitude...

  7. #7
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,671
    Thanks
    88
    Thanked 544 Times in 460 Posts
    Blog Entries
    1
    Quote Originally Posted by Blurock View Post
    I will accept a "croxley" invoice (book) where a small business does not have printed stationery. Company stamp, VAT number and everything checks out. But if it is only a piece of paper from someone I do not know...
    True, however the original question was about no invoice from a supplier. I was assuming the supplier in all probability is not a VAT registered entity, and that the hand written paper was for a record of the expense.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

  8. #8
    Gold Member IMHO's Avatar
    Join Date
    Jan 2012
    Location
    NW
    Posts
    538
    Thanks
    11
    Thanked 52 Times in 47 Posts
    @J7J, are you talking about small, petty expenses?
    ~Expenses will eat you alive! - My first Boss~

  9. #9
    Full Member
    Join Date
    Oct 2011
    Location
    Gordon's Bay, Western Cape
    Posts
    67
    Thanks
    2
    Thanked 2 Times in 2 Posts
    In my opinion, if a company can go so far as to be registered for VAT, it should be expected of them to at least issue printed invoices. But if they really do not have official invoices, I would accept a written invoice insofar as it complies with legal requirements (addresses, ect) and I have validated the VAT number with SARS (rather easy to do).

  10. #10
    Silver Member
    Join Date
    Apr 2011
    Location
    Jhb
    Posts
    276
    Thanks
    105
    Thanked 14 Times in 10 Posts
    Quote Originally Posted by IMHO View Post
    @J7J, are you talking about small, petty expenses?
    Hi IMHO - no, not only small, petty expenses...

Similar Threads

  1. Invoices in Pastell V11 Startup
    By Vinruby in forum Accounting Forum
    Replies: 4
    Last Post: 05-Aug-14, 02:31 PM
  2. [Question] Web Hosting Providers
    By Cream in forum Technology Forum
    Replies: 17
    Last Post: 13-Dec-10, 10:01 AM
  3. [Question] what does RICA say about web hosting providers & clients?
    By SilverNodashi in forum General Regulatory Compliance Forum
    Replies: 6
    Last Post: 18-May-10, 10:06 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •