Self-invoicing 101: Do these three things once you’ve created a tax invoice, credit or debit note

43984, 21 Oct. 2014

Tags: self-invoicing, tax invoices

Self-invoicing is when you, as a registered Vat vendor, issue tax invoices, credit and debit notes yourself so you can claim input tax. By doing this, you don’t have to wait for your supplier to issue an invoice.
In terms of Vat law, it’s 100% okay to self-invoice when you, as the recipient:
  • 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 sold by the supplier.
But there are three important things you must do once you’ve created your invoice, credit or debit note. Read on to find out what they are so you can get your self-invoicing right every single time and avoid the wrath of SARS.
Three things you must do once youve created your tax invoice, credit or debit note
Once you’ve created your valid tax invoice, credit or debit note, make sure you do these three things to comply:
  1. Give your supplier a copy of the tax invoice, credit or debit note and keep a copy of it yourself;
  1. Issue the tax invoice within 21 days of the date of the supply being made; and
  1. Keep a copy of the recipient-created tax invoice, credit or debit note for the period of five years as required in terms of Section 29 of the Tax Administration Act (TAA) and Section 55 of the Vat Act.
Now that you know about these three things, stick to them once you’ve created your tax invoice, credit or debit note. Doing this will help you avoid the wrath of SARS when it comes to self-invoicing.

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