Invoicing

[JPWilliams007]

Morning,

Can one do a tax invoice without vat to a client in south Africa whilst being a vat vendor?

[Neville Bailey]

My understanding is that, if you are registered for VAT, you are obliged to issue all your invoices with VAT.

[JPWilliams007]

Hi, thanks appreciated.
Would this mean that for example, I purchased milk through one company then our sister company takes half. I then have to do an intercompany invoice for staff welfare do I include VAT?

[Neville Bailey]

Yes, although the sister company might not be able to claim the VAT in the example you have given, as I think staff welfare related purchases are not VAT claimable.

[JPWilliams007]

Thanks a million

[CLIVE-TRIANGLE]

Also, milk is zero rated

But Neville is right also about the staff thing, it is like entertainment

[AndyD]

Hi JPWilliams, good to see you back again.
I closed the other identical thread you made to avoid confusion.

[Dave A]

If it's an inter-group-company invoice, and you don't normally invoice for zero-rated goods, I suggest you just raise an admin fee invoice with VAT. It's way less complicated, and easier to identify the related company transactions too when it comes to annual financial reporting time.

[Blurock]

When invoicing, some businesses seem to be lax in displaying the correct registered company/cc name.

I have come across invoices where only the trading name is used and not the full registered name e.g. Tommy's Tom Toms instead of XYZ cc T/a Tommy's Tom Toms. Maybe our accounting friends can help us out to confirm the required standard and where to get the info.

Guidelines from SARS

The words “TAX INVOICE” in a prominent place;
o Name, address and VAT registration number of the supplier;
o Name, address and VAT registration number of recipient*;
o Serial number and date of issue;
o Full and proper description of the goods and/or services;
o Quantity or volume of goods or services supplied;
o Price & VAT

[Samu]

Neville you said if you are registered for VAT, you are obliged to issue all your invoices with VAT but have a situation where the company was issuing invoices without VAT, how do i deal with that?

[Neville Bailey]

Neville you said if you are registered for VAT, you are obliged to issue all your invoices with VAT but have a situation where the company was issuing invoices without VAT, how do i deal with that?

I can't tell you how to deal with that situation, but I can tell you that the company is in breach of the VAT Act.

[CLIVE-TRIANGLE]

As for as I know (I am too knackered to look it up) the CPA, for one, requires both the registered and trading name.

With the advent of defensive names, my clients have the trading name and number prominently displayed, and the registered name and number far less prominently displayed, usually as a sort of footer.

It is probably a moot point, however. SARS for one are extremely "flexible" when it comes to trading names. The critical issues seems to be the ones alluded to by Blurock and little else matters. The CPA on the other hand is attempting to protect consumers by putting requirements there so that you can actually seek redress against a registered entity, especially if it is incorporated.

I practically compel clients to record their VAT numbers in their phones, because when they go supplies hunting, the tax invoice requirements are the last thing on their minds.