In South Africa, a tax invoice is a crucial document for VAT-registered vendors as it enables them to claim input tax credits. A valid tax invoice must contain specific information as required by the South African Revenue Service (SARS). Here's a list of the essential elements a South African tax invoice should contain:
The words "Tax Invoice" clearly displayed at the top or prominently on the document.
The name, address, and VAT registration number of the supplier (vendor).
The name, address, and where the recipient is a vendor, the VAT registration number of the recipient (buyer).
A unique, sequential invoice number and the date of issue.
A clear description of the goods and/or services supplied, including quantities (where applicable).
The total quantity or volume of the goods and/or services supplied (if applicable).
The unit price, quantity or volume of each item, and the rate of VAT (if any) applied to each item.
The total amount charged for the goods and/or services, excluding VAT.
The rate of VAT (currently 15% in South Africa) and the total VAT amount charged, shown separately.
The total amount due, including VAT.
It's important to note that the requirements for a tax invoice can vary depending on the transaction value. For transactions under ZAR 5,000, a simplified tax invoice may be issued, which requires fewer details. However, the above list represents the essential elements for a full tax invoice.
See the template here.