[Question] VAT number on invoice

[ians]

I think this question has been asked before, if I am not a vat registered company, do I have to put my "customers" VAT number on my invoice.

[Elijah]

Hi Ians

Whether you are registered for Vat or not if the amount is less than R5,000, [as of Decemeber 2012], then there is no need [Abridged Tax Invoice]. There is a difference between a regular invoice and a Tax Invoice, both of these terms are defined in the Vat act. If you are not registered for Vat then you do not need to issue a tax invoice therefore dont need to put the name,vat number of the recipient/customer

[ians]

Yip I am no longer trading as a VAT vender.

[HR Solutions]

Then your invoice will just be called "Invoice" and there is no need to put your customers vat number on the invoice because he cannot claim the vat back anyway, but why not do it if he wants it. There is no harm in having it on the invoice.

[Tato]

Hi Ians

Whether you are registered for Vat or not if the amount is less than R5,000, [as of Decemeber 2012], then there is no need [Abridged Tax Invoice]. There is a difference between a regular invoice and a Tax Invoice, both of these terms are defined in the Vat act. If you are not registered for Vat then you do not need to issue a tax invoice therefore dont need to put the name,vat number of the recipient/customer

So the new R5000 threshold replaces the old R3000!?

Regarding the last sentence, doesn't the (VAT registered or not) client need his details (at least company name and address) on supplier invoices of a certain size?
So that SARS can better check whether supplier invoices have been rightfully registered as costs. Otherwise I could imagine a "black market" for blanco invoices.
Is there a different threshold?

[Elijah]

Hi Tato

A business that is not registered for Vat can not charge Vat, so the business they are supplying can-not claim vat if they haven't been charged vat. You need a valid Tax Invoice to claim input vat. So, no "Black Market" can ensue.

[Dave A]

I suspect Tato is looking at this from a "deductible expenses from income" point of view.

[Elijah]

So the new R5000 threshold replaces the old R3000!?

Yes, R5,000 threshold replaces the old R3,000 threshold.

doesn't the (VAT registered or not) client need his details (at least company name and address) on supplier invoices of a certain size?

In all business dealings even if it just a letter or contract, One would always need to supply at least the Name of the Business and the Address. This is a legal requirement. E.g if the company is a Close Corporation the letters cc must be included in "ALL" correspondence, this lets other people know that the company has limited liability.

what a number of businesses do is issue a full Tax invoice irrespective of the Threshold as this prevents errors, and ensures that you always complying. But if you not registered for Vat then you shouldn't issue a tax invoice. Hope this answers your queries.

[Tato]

Sorry, but this does not answer my last question.

In regard of VAT it is easy: If SARS does a check and discovers that I submitted an invoice of e.g. R10,000 for input VAT which doesn't bear my companies details incl. VAT no., then SARS will reject that invoice for VAT purposes, so I loose out or have to get a proper "replacement" invoice.

My assumption would be that in the case of non-VAT invoices SARS does or should do the same when it comes to income tax, or better, as Dave wrote, "deductible expenses from income", requiring at least the company/trading name and address on "larger" invoices.
They could require you to submit supporting documentation, but that causes extra work for everybody, whereas an implemented threshold would result in "proper" invoices right away.

So does anybody know whether there is such a threshold or not?

[Elijah]

There is no threshold on Invoices or Tax Invoices regarding Income Tax, there are only deductible and non-deductible expenses.

[msmoorad]

can anyone advise me:
im not registered for vat & i intend selling goods to a company that is registered for VAT
they gave me a pricelist it says those prices exclude vat
so will they pay me VAT or do they only pay if im also vat registered?

i have sold stuff to other companies & it shows that vat was included in the prices they paid me.