Get the job agreed before you invoice it
An invoice gets paid faster when it matches something the client already said yes to. For anything bigger than a small job, send a quote first. Once the client accepts it, the invoice is the same numbers with a due date, and there's little left to argue about. If you're unsure which document to send when, see invoice vs quote.
Are you VAT-registered? That decides what the law requires
If you're not registered for VAT (see who has to register), the law doesn't prescribe what your invoice must look like. It still needs to be clear enough for the client to pay you and for you to prove the income later. If you are registered, your invoice is a tax invoice, and the VAT Act (section 20) lists what it has to contain. Our tax invoice checklist covers every field. Get it wrong and your client may not be able to claim the VAT back from SARS.
Two rules matter before the details:
- Only VAT-registered vendors can charge VAT or issue a tax invoice. If you're not registered, don't add VAT and don't show a VAT number.
- A VAT vendor must issue the tax invoice within 21 days of the supply.
Step 1: Add your business details
Your business or trading name, address, phone number and email, plus your logo if you have one. If you're still deciding on a structure, our business registration guide explains the options. If you're a VAT vendor, your VAT registration number goes here too, and the document must carry the word "Tax Invoice", "VAT Invoice" or "Invoice". Invoices have to be in rand.
Step 2: Add your client's details
The client's name and address. On a VAT invoice, you also need the client's VAT number if they're a registered vendor, since they'll need it to claim the VAT. That requirement applies to full tax invoices, which are the ones for sales above R5,000. Below that, an abridged tax invoice can leave out the client's details, though most businesses include them anyway.
Step 3: Give it a unique invoice number
Every invoice needs its own number. SARS asks for an individual serialised number on a tax invoice, and a running sequence such as INV-2026-0001 (prefix, year, count) is the easiest way to satisfy that. Numbering by hand in a spreadsheet is how duplicates and missing numbers creep in, and you'll be the one explaining them when a client or accountant asks.
Step 4: Set the invoice date and payment terms
Put the invoice date on it, and say when payment is due. "Payment due within 7 days" or a specific date leaves nothing to interpret. "Payable on receipt" with no date invites the client to pay whenever it suits them. The terms are whatever you and the client agree, so it helps to have them in your quote too. For new clients or big jobs, you can ask for a deposit up front and show it as a line on the invoice.
Step 5: List what you're charging for
One line per item, each with a description, quantity, unit price and line total. "Website work" is vague. "Homepage redesign, 12 hours at R850" tells the client what they're paying for and cuts down on queries. If you're not sure what rate to put on those lines, see how to price your services. SARS wants a full and proper description of the goods or services and the quantity or volume, so this is also what makes a VAT invoice valid.
If you're VAT-registered, show the VAT amount, or state that the total includes VAT and the rate (15%). Add VAT only to lines that attract it. The VAT you charge is what you later declare on your VAT201, which our eFiling guide walks through.
Step 6: Add your banking details
Account name, bank, account number, branch code, and the reference the client should use, usually the invoice number. If you take online payments, include the payment link. Many late payments aren't a client refusing to pay. The client just had to email you to find out where to send the money.
Step 7: Send it when the work is done
Payment terms start counting when the client has the invoice, so the day you send it matters as much as the day it's due. Send a PDF by email, or on WhatsApp if that's how the client prefers to hear from you. VAT vendors have the 21-day limit on top of that. For more habits that shorten the wait, see 8 ways to get paid faster.
Step 8: Track it, follow up, and record the payment
Know which invoices are unpaid and which are overdue, and follow up on a schedule instead of when you remember. A reminder a few days before the due date and another just after it recovers most late payments. When money arrives, record it against the invoice, including part-payments.
Keep a copy of every invoice you issue. They're also your record of income at tax time, including if you pay provisional tax. The Tax Administration Act requires you to keep your business records, invoices included, for five years.
What if you get an invoice wrong?
Don't edit an invoice the client already has. If you're a VAT vendor and the VAT charged was too high, you issue a credit note. If it was too low, you issue a debit note. For other mistakes, such as a wrong description or amount, a credit note followed by a corrected invoice keeps your records clear.
Common invoicing mistakes
These are the ones we see most. There are more in the 6 most common invoicing mistakes.
- Reusing an old invoice and forgetting to change the number or date
- Leaving out the payment terms or banking details
- Invoicing weeks after the work is done
- Not keeping a copy of what was sent, or to whom
- Charging VAT when you're not registered, or leaving it off when you are
Word or Excel template vs invoicing software
A template is fine for your first few invoices. It gets harder once you're numbering by hand, keeping track of who's paid in your head, and retyping the same client details each month. Invoicing software handles the repetitive parts (our software comparison guide covers what to look for): automatic numbering, saved clients, PDFs that look the same every time, reminders, and a running view of who owes you what.
Frequently asked questions
What must an invoice include in South Africa? If you're not VAT-registered, there's no legal list, but include your details, the client's, a unique number, the date, a description of the work, amounts, payment terms and banking details. A VAT tax invoice must have specific items: the supplier's name, address and VAT number, the client's details, a serial number, the date, a description, quantity, and the VAT or a statement that VAT is included. Our template guide goes through them.
Do I have to write "Tax Invoice" on it? Only if you're a VAT vendor, and since 2016 the document can say "Tax Invoice", "VAT Invoice" or "Invoice". If you're not registered, use "Invoice".
When do I need the client's VAT number? On a full tax invoice (over R5,000), if the client is a VAT-registered vendor.
How soon do I have to send an invoice? VAT vendors must issue the tax invoice within 21 days of the supply. If you're not registered, there's no legal deadline, but sooner means you get paid sooner.
How long should I keep invoices? Five years, under the Tax Administration Act.
Can I make an invoice in Word or Excel? Yes. A template is fine as long as it has the right details and the numbering stays unique. The trouble tends to come later, with tracking payments and following up.
Is there a free invoice generator for South African businesses? Yes. Invo's free invoice generator makes a PDF invoice without signing up.
