Do you send tax invoices to your clients via email? Make sure they meet these four requirements

43984, 26 Aug. 2014

Tags: sars, tax invoices, electronic tax invoices, sending tax invoices via email

Quick question: Do you send tax invoices to your clients via email?
If so, we’re glad you’re taking advantage of the convenience and cost-effectiveness of email and are sending your invoices electronically, but we want to bring something very important to your attention.
While SARS accepts electronic tax invoices, it has four requirements you must comply with to ensure your tax invoices are valid.
Read on to find out what these requirements are so you can comply and avoid penalties if you send tax invoices to your clients via email.
Four requirements you must meet if you send electronic tax invoices to your clients
Requirement #1: The recipients of the supply (your clients) must agree in writing that they’re willing to accept electronic documents. You must keep this agreement for five years.
Requirement #2: The electronic tax invoices must contain the mandatory information.
This includes:
  • The words “tax invoice”;
  • The Vat number;
  • The date the product or service was issued;
  • A description and the mass or quantity of the goods bought; and
  • The amount paid for the goods bought.
Requirement #3: You must transmit the tax invoices in encrypted form of at least 128 bit encryption. This means the documents are secure and guards against fraud because it won’t be possible for unscrupulous parties to interfere or tamper with them in any way.
Requirement #4: You and your client must retain these electronic documents and invoices for five years. The electronic document will serve as the original tax invoice.
When it comes to tax invoices, take no chances – make sure you comply with these requirements if you send electronic tax invoices. A tax invoice is, after all, the most important link in the tax/Vat chain and you must get it right to avoid penalties.

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