Tax Invoice VS Invoice

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  • 3x-a-d3-u5
    Bronze Member

    • Jan 2009
    • 133

    #1

    [Question] Tax Invoice VS Invoice

    Hi Guys,

    I'm a sole trader offering a service (Web hosting). Recently however a client mailed me the following:

    We have been advised by SARS that invoices must be marked as ‘TAX INVOICE’ to be acceptable, i.e. that ‘INVOICE’ is not sufficient.
    My issue is being a sole trader for this business, is it still necessary to name invoices as tax invoices?

    Thanks Paul
    once there was a man. the end.
  • Faan
    Bronze Member

    • Jan 2007
    • 123

    #2
    If your client tries to claim VAT he has to have a tax invoice stating the VAT amount.
    You cannot charge VAT if you are not VAT registered and if you do you have to indicate that on the invoice and show your VAT registration number.

    Compulsory VAT registration is only necessary when your turnover exceeds R1m, but you may register for VAT should you wish. You will have to do a few calculations to determine whether it is worth your while.
    Faan Kruger
    +27 82 853 7879
    krugerfaan@gmail.com

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    • 3x-a-d3-u5
      Bronze Member

      • Jan 2009
      • 133

      #3
      Thanks Faan! I came to a similar conclusion myself, but just wanted some confirmation.
      once there was a man. the end.

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