Tax invoice requirements in South Africa: what SARS says to include

Once you're registered for VAT, your invoices do a second job. Your business clients use them for their own VAT returns, so they need a proper tax invoice. Section 20 of the VAT Act sets out what it must show, and SARS explains the rules in its VAT 404 Guide for Vendors. There's no prescribed layout, but there is a list of details, two levels of invoice and a deadline.

This guide covers full and abridged tax invoices, the R5,000 line, the three ways to show VAT, mixed invoices, and when you must issue one. The free invoice generator always prints a full tax invoice, which is valid at any amount.

Full or abridged: which one you need

The amount of the sale, including VAT, decides what you need:

The Act's test for an abridged invoice is an amount that "does not exceed R5 000", so a sale of exactly R5,000 can still be abridged. The Act doesn't allow an abridged invoice for a zero-rated supply, such as an export or basic foodstuffs.

What a tax invoice must show

If you sell second-hand goods, the description must say so.

The title, your details and your client's

SARS's current guide accepts "tax invoice", "VAT invoice" or "invoice" as the wording. Even so, "Tax Invoice" is the norm in South Africa, and it's what your clients' accounts teams look for. Invoice Native uses it when you choose "Registered for VAT".

Your address can be your physical address, your postal address or both. SARS's Binding General Ruling 21 accepts any of these, for you and for your client. Add your VAT number, labelled "VAT No." or "VAT Registration No.". For the format and the client's number, see your VAT number on invoices. Companies must also show their registration number; see company details on invoices.

The description should tell a person what you supplied. A product code on its own isn't a full and proper description.

Three ways to show the price and the VAT

SARS lists three approved methods:

1. The value excluding VAT, the VAT amount, and the total including VAT.
2. The total, with a statement that it includes VAT and the rate, such as "VAT included @ 15%".
3. The total, with the amount of VAT it includes.

All three work on full and abridged invoices. The VAT in a VAT-inclusive price is 15/115 of it: R1,150.00 includes R150.00 VAT.

In Invoice Native, enter prices excluding VAT and the invoice shows the value, the VAT and the total. Or tick "Prices include VAT", and it prints "VAT included @ 15%" with the VAT amount, since South African prices are usually quoted including VAT.

Mixed invoices and the VAT column

When one invoice mixes standard-rated, zero-rated or exempt items, SARS says it "must clearly distinguish between the various supplies" and show the values and the VAT on each. SARS's own example adds a VAT status column reading 15%, 0% or Exempt, and one line for the VAT on the standard-rated total.

Invoice Native has a VAT column on every line that shows "15%", "0%", "Exempt" or "No VAT". It works out the VAT once, on the total of the standard-rated lines, and rounds it once to the cent, as SARS's example does.

Worked example

A VAT-registered farm shop bills a restaurant:

The total is under R5,000, but the vegetables are zero-rated, so this must be a full tax invoice, with the restaurant's name, address and VAT number. Olive oil is standard-rated: the zero rate covers vegetable oil, but not olive oil.

Rand and foreign currency

A tax invoice for a standard-rated supply must be in rand. You may also show the foreign amount and the exchange rate, under SARS's Binding General Ruling 11. A zero-rated supply, such as an export or services to a non-resident, may be invoiced wholly in foreign currency. See zero-rated exports and non-residents.

When to issue it

You must issue a tax invoice within 21 days of the supply, whether or not your client asks for one. The rule also applies when an agent issues it for you. Failing to issue one is an offence.

Only one tax invoice may exist for each supply. If your client loses theirs, send a copy clearly marked "Copy". If the price or the VAT was wrong, don't send a second invoice; issue a credit note or debit note.

PDFs and keeping records

You don't need SARS's approval to send invoices electronically, so a PDF sent by email is a valid tax invoice. Keep your records for 5 years.

SARS has proposed moving to structured e-invoices that are checked in near real time, with a pilot planned for 2029/30 and a phased roll-out after that. Nothing changes yet: a PDF is still fine.

Checklist

• ✅ Title "Tax Invoice"
• ✅ Your name, address and VAT number
• ✅ Your client's name and address, and their VAT number if they're a vendor
• ✅ A unique number, the date of issue, a full description and the quantity
• ✅ The VAT shown one of three ways, with a VAT column on mixed invoices
• ✅ Amounts in rand for standard-rated supplies
• ✅ Issued within 21 days; one invoice per supply; records kept for 5 years

Rules can change, so check SARS's guidance or ask a registered tax practitioner about your situation. Invoice Native does not provide tax advice.