There are eight requirements for a valid tax invoice! Do you know what they are?

Simangele Mzizi, Fsp Business, 12 Sep. 2014

Tags: sars, vat, tax invoices

If you’re our regular reader, chances are you’re familiar with this statement: “The most important link in the Vat chain is a valid tax invoice.”

We always mention this statement because a tax invoice is that crucial.

It provides an audit trail in your records and verifies your output tax. This is important if SARS checks up on your record-keeping.

Basically, without valid tax invoices you can’t prove your input tax claims. This means, you’ll have SARS penalties coming your way.

But you can avoid all of this if you know the eight requirements of a valid tax invoice.

Read on to find out what they are so you can ensure you issue and receive valid tax invoices.

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Your tax invoice is only valid if it contains these eight things

Your tax invoice must have:
  1. The words “Tax Invoice”
  1. The name, address and Vat number of the supplier
  1. The name, address and Vat number of the buyer. (If you sell to someone that isn’t a vendor, leave it open.)
  1. A serial number of the invoice;
  1. The date the product/service was issued;
  1. A description and the mass or quantity of the goods bought;
  1. The amount paid for the goods bought; and
  1. The price of the goods, the amount of Vat and the total, or one amount including the Vat, (i.e. either 0% if zero-rated or 14% if standard-rated must appear on the tax invoice).

Now that you know the eight requirements, make sure the tax invoices you issue or receive are valid so you can avoid SARS penalties.

If you have any questions about tax invoices, ask our experts at the Accounting&Tax Club. 

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