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Tax Talk: VAT INVOICES.

Tax Talk: VAT INVOICES.

Author: Natalie Wocke
Date: 2014-09-19
Are yours valid?
Section 20 of the Vat Act no.89 of 1991, deals with "Tax Invoices", and the requirements to be met for the issue of a valid tax invoice against which a purchasing vendor may claim input. A tax invoice must be issued (generally by the supplier), within 21 days of the supply being made. It is unlawful to issue more than one tax invoice for each taxable supply. Where a vendor has lost the original tax invoice, the vendor may only provide a copy which is clearly marked "copy".

Issuing a tax invoice for supplies under R50 is optional, and SARS will generally accept a till slip.

For supplies between R50 and R5, 000, an abridged tax invoice is acceptable. The invoice must be denominated in Rand (unless it is a zero rated supply), and contain the name "Tax Invoice," clearly and prominently displayed. The name, address and VAT registration number of the supplier, date of supply, an individual serial number; a full description of the goods/services supplied, and where relevant a note that the goods are second hand. The invoice should clearly state the value of the supply, the vat, and the total consideration for the supply. Alternatively, a statement that the consideration includes vat, and the rate at which vat was charged.

A full tax invoice is required for supplies where the consideration exceeds R5, 000. A full tax invoice must contain, in addition to the above, the name address and registration number of the recipient, and the volume or quantity of goods/ services supplied.

Special rules also apply to the issue of tax credit and debit notes. To obtain assistance in ensuring you are compliant, make an appointment at your nearest branch of Roberts and Chaplin. Tel: (032) 586 0387 Ballito and (032) 947 1010 Umhlali.