[Question] Companies that do not issue invoices...

[mbsmit]

Hi there,

I have a supplier, of courier services, who issues a pro-forma invoice for shipments but then never forwards me a commercial invoice. This poses a problem, as I spend in excess of R5 000 p/m on courier services, and would like to be able to deduct this from income tax. I am not a VAT Vendor, so a tax invoice is not a legal requirement but I would like to have proof in the event that I am audited.

Will the Pro-Forma Invoice, along with proof of payment suffice as proof, in the event of an audit? Or must I pressure them to issue me a commercial invoice?

Thanks!

[DavidvN]

I would advise obtaining a proper issued invoice. Pro-forma invoices are not sufficient support when audited, based on my experience with this in the past.

[jasonpat]

The companies who did not issue invoices may face legal problems in the court.

[Dave A]

Trouble is someone's got to take them to court first

One of my bugbears is paid parking where where there is no facility for you to get a receipt. Too small to kick up a fuss, but it adds up to a few thousand a year in my operation.

[mbsmit]

Trouble is someone's got to take them to court first

One of my bugbears is paid parking where where there is no facility for you to get a receipt. Too small to kick up a fuss, but it adds up to a few thousand a year in my operation.

Very true. And even worse, this company is a registered VAT vendor (and has me pay 14% VAT). As far as I am aware a VAT Vendor MUST issue a tax invoice within 21 days, otherwise they commit an offense. But the issue is that their service is great and I would not like to lose them as a supplier. Vat isn’t an issue for me, as I am not a VAT Vendor myself but having the needed supporting documents in the event of an audit is vital.

I do have copies of the waybills and my bank statements clearly indicate that I paid this specific supplier x-amount. So, I can prove it, but my issue is not having an actual invoice as supporting document...

Any ideas on how to proceed?

[Dave A]

Are they refusing to issue a tax invoice when you request one?

[Justloadit]

If they are VAT registered and do not issue a VAT invoice according to the SARS outlines, this then constitutes an offense. On the other hand if they are not VAT registered, and are claiming to charge VAT, then this is fraud.

Maybe a friendly chat to the owner may wield you results, and even as far as going to save you 14% on all your future purchases.