Sorry - no Tax Invoice - FNB

[pietpetoors]

Can somebody please tell me if a business must give you a tax invoice or receipt if you purchased anything from them?

My business usesa 3G contract and sometimes we run out of data.
I then purchase a data bundle using my FNB online banking.

I asked FNB various times to please send me a VAT invoice for my purchase, but their reply each time is
"Kindly be advised that I called our cell phone banking department and was advised that they are unable to send a VAT invoice for airtime purchases."

In my opinion if they sell a product, in this case airtime, they act as a business thus they must be able to give me either a receipt or VAT invoice which I can use for my business books.

Or am I wrong?

[Justloadit]

Is the PIN number supplied via a PDF view attachment, or is the data bundle automatically sent to your number?

Also there is a directive in which purchases below a certain amount do not require an invoice to collect the VAT paid, not sure of the amount, but I am sure our learned collegues who deal in the VAT arena will be able to shed some light on the minimum amount. A simple book entry against your payment on the bank statement will more than suffice.

In the prepaid business, the generation of the invoice often costs more than the profit made on the sale.

[pietpetoors]

Thanx for the reply
It is the type loaded directly to the number.

[Mike C]

Hi Pietpetoors - Justloadit is correct about purchases below a certain amount not needing a Tax Invoice, but a sales slip is usually still required.

Where the consideration in money for a supply is R50 or less, a tax invoice is not required (however, a document such as a till slip or sales docket will still be required to
verify the input tax claimed);
Where the consideration for a taxable supply exceeds R50 but does not exceed R3 000, an abridged tax invoice may be issued

[Justloadit]

When the purchase is made, there must be some acknowledgement on your side that the transaction has taken place. Printing this will probably suffice for the paper record.

[Dave A]

How does the transaction reflect on the bank statement?

When you consider bank service fees, these are just reflected on the bank statement - there isn't a separate Tax Invoice. If the airtime charge is reflected in similar manner, there shouldn't be a problem.

A slightly different example of where a Tax Invoice isn't received is insurance premiums, and in this case the policy document serves as adequate supporting documentation.

On a side note, that R50 threshold has been in place forever. Time for SARS to up the threshold?

[pietpetoors]

Got this from our tax guy

A VAT vendor must issue a tax invoice within 21 days of the supply having been made where the consideration for the supply exceeds R50, whether the purchaser has requested this or not. If the consideration for the supply is R50 or less, a tax invoice is not required. However, a document such as a till slip or sales docket indicating the VAT charged by the supplier, will be required to verify the input tax.