Service providers that do not supply invoices

[J7J]

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?

[Justloadit]

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.

[Blurock]

I will refuse to pay VAT on a hand written invoice.

[Dave A]

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?

[Justloadit]

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.

[Blurock]

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...

[Justloadit]

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.

[IMHO]

@J7J, are you talking about small, petty expenses?

[mbsmit]

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).

[J7J]

@J7J, are you talking about small, petty expenses?

Hi IMHO - no, not only small, petty expenses...