[Opinion] Tax Invoices and VAT

[Roger15]

Hi there

SARS more often nowadays are and will be, requesting documentation relating to Tax Invoices and claiming of input VAT. VAT will be automatically adjusted if the main input claims are not invoiced correctly and to the correct representative taxpayer.

All invoices must contain the following:

Full tax invoice (Consideration of R3, 000.00 or more) - the words, "tax invoice" must be in a prominent place, name, address and VAT registration number of the supplier, Name, address and VAT registration of the recipient, serial number and date of issue, full and proper description of the goods and services, quantity or volume of goods or services supplied, price and VAT. (Subject to the below methods)

Abridged tax invoice (Consideration less than R3, 000.00) - the words "tax invoice" in a prominent place, Name, address and VAT registration number of the supplier, serial number and date of issue, a description of the goods and services, Price and VAT. (Subject to the below methods)

One of the three methods must be used.

Price (excl VAT) R 500
VAT charged R 70
Total Including VAT 570

or

Total consideration R570
VAT included @ 14%

or

Total consideration R 570
VAT included R 70

One should consult SARS VAT404 - Guide to vendors.

Thanks

[Dave A]

Full tax invoice (Consideration of R3, 000.00 or more)

Hasn't the threshold requiring a full tax invoice been increased to R7 000.00 and more?
(Or am I getting confused with something else that changed fairly recently).

[Roger15]

Hi Dave - R5,000.00 even though SARS still uses R3,000.00

(4) Except as the Commissioner may otherwise allow, and subject to this section, a tax invoice (full tax invoice) shall be in the currency of the Republic and shall contain the following particulars:

•(a) the words tax invoice in a prominent place;
•(b) the name, address and VAT registration number of the supplier;
•(c) the name, address and where the recipient is a registered vendor, the VAT registration number of the recipient;
•(d) an individual serialized number and the date upon which the tax invoice is issued;
•(e) full and proper description of the goods (indicating, where applicable, that the goods are second-hand goods) or services supplied;
•(f) the quantity or volume of the goods or services supplied;
•(g) either:
(i) the value of the supply, the amount of tax charged and the consideration for the supply; or

(ii) where the amount of tax charged is calculated by applying the tax fraction to the consideration, the consideration for the supply and either the amount of the tax charged, or a statement that it includes a charge in respect of the tax and the rate at which the tax was charged:



Provided that the requirement that the consideration or the value of the supply, as the case may be, shall be in the currency of the Republic shall not apply to a supply that is charged with tax under section 11.

(5) Notwithstanding anything in subsection (4), where the consideration in money for a supply does not exceed R5 000, a tax invoice (abridged tax invoice) shall be in the currency of the Republic and shall contain the particulars specified in that subsection or the following particulars:

•(a) the words tax invoice in a prominent place;
•(b) the name, address and VAT registration number of the supplier;
•(c) an individual serialized number and the date upon which the tax invoice is issued;
•(d) a description of the goods (indicating, where applicable, that the goods are second-hand goods) or services supplied;
•(e) either:
(i) the value of the supply, the amount of tax charged and the consideration for the supply; or

(ii) where the amount of tax charged is calculated by applying the tax fraction to the consideration, the consideration for the supply and either the amount of the tax charged, or a statement that it includes a charge in respect of the tax and the rate at which the tax was charged:

This applies to all supplies made on or after 20 December 2012