When you issue a zero-rated tax invoice to a non-resident, make sure it contains these three details

Simangele Mzizi, Fsp Business, 03 Oct. 2014

Tags: sars, tax invoices, issuing a zero-rated tax invoice to a non-resident, zero-rated tax invoice

If you regularly issue zero-rated tax invoices to non-residents, this article is for you.

SARS has strict requirements when it comes to tax invoices and it’s crucial you adhere to them.

If you don’t, you’ll have major penalties coming your way. What’s more, SARS will audit you more regularly because you’re someone who doesn’t comply with legal requirements.

Luckily, there’s a way to avoid the wrath of SARS.

Simply make sure the zero-rated tax invoice you issue to a non-resident contains the following three details.

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Three details to include when you issue a zero-rated tax invoice to a non-resident

  1. The Practical Vat Loose Leaf Service says you must include a physical address of the non-resident in the foreign country or postal address of the non-resident; or both the physical and the postal address of the non-resident.
  1. You must show Vat as zero (0) percent.
  1. You must show all the other details a tax invoice would normally show, including:
  • The words “tax invoice”;
  • The name, and Vat number of the supplier;
  • An individual serial number;
  • The date when the tax invoice is issued;
  • A full and proper description of the goods (indicating, where applicable, that the goods are second-hand goods or services supplied);
  • The quantity or volume of the goods or services supplied; and
  • Either the amount of the supply, the Vat at the zero-rate and the total or the total amount of the supply, including Vat and a statement on the invoice that says that Vat is zero-rated. (If you’re dealing with a zero-rated export, the invoice doesn’t have to be in rand. You have the option to insert an amount in a foreign currency.)
To avoid SARS penalties and endless audits, make sure the zero-rated tax invoice you issue to a non-resident contains the details above.

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Anelda 2015-12-14 13:40:28



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