If you self-invoice, make sure your tax invoice meets SARS’ nine requirements, or you won’t be able to claim input tax

Simangele Mzizi, Fsp Business, 06 Jan. 2015

Tags: tax invoices, self-invoicing, sars, requirements for self-invoicing, input tax, claiming input tax

Self-invoicing is when you, as a Vat vendor issue tax invoices for yourself.

This means you don’t have to wait for your supplier to issue you with a tax invoice.

In terms of Vat law, it’s legal to self-invoice if you:

• Determine the amount payable for the supply of the goods or services; and
• Are in control of determining the quantity or quality of the supply.
• Or are responsible for measuring or testing the goods your supplier sells.

But just because you can self-invoice doesn’t mean you can do as you please. You must meet SARS’ nine requirements. If you don’t, you won’t be able to claim input tax.

“So what are these requirements?” you ask.

Read on to find out…

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Nine requirements your tax invoice must meet if you self-invoice

The Practical Vat Loose Leaf Service says you need to make sure your tax invoice:

  1. Is in South African currency;
  1. Has the words “tax invoice” in a prominent place;
  1. Has the name, address and Vat registration number of your supplier;
  1. Has your name, address and location;
  1. Has your Vat registration number;
  1. Has an individual serial number and the date you issued the tax invoice;
  1. Has a full and proper description of the goods or services your supplier gave you. If the goods are second-hand, you must make that clear on the invoice;
  1. Has the quantity or volume of the goods or services from your supplier;
  1. Has either:
  • The value of the supply, the amount of tax charged and the total for the supply; or
  • The Vat inclusive amount.
Don’t let your tax invoice be the reason you miss out on a valuable input tax claim. Make sure it always meets SARS’ nine requirements when you self-invoice.
PS: We’ve just scratched the surface with these requirements. There’s so much more you need to know about self-invoicing. And that’s why we recommend you check out the Practical Vat Loose Leaf Service for more information.

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