How to Invoice When You're Not VAT Registered in South Africa

The short answer

If you aren't registered for VAT, you send a plain invoice. There's no VAT line, no 15% added on top, and the words "Tax Invoice" don't go at the top. Only a registered VAT vendor can charge VAT or issue a tax invoice, and you become a vendor on the day SARS gives you a VAT number, not before.

That covers most freelancers, tradespeople and small shops. Since 1 April 2026 you only have to register once your taxable turnover passes R2.3 million in any 12 month period (it used to be R1 million). Between R120,000 and R2.3 million you can register if you want to, which used to start at R50,000. The voluntary route starts above R120,000. The VAT registration guide goes through both thresholds in more detail.

What goes on the invoice

No law prescribes a layout for a non-VAT invoice, so the aim is simply to give your client everything they need to pay you and give you a clean record. This is the set I'd put on every one:

• Your name or trading name, with your phone number and email
• Your client's name and address
• A unique invoice number that runs in sequence, like INV-2026-0001
• The invoice date and the date payment is due
• A description of what you did or sold, with the quantity and the price for each line
• The total amount due
• Your bank name, account number, branch code and a payment reference
• Your payment terms in plain words, such as "Payment due within 14 days of invoice date"

The numbering matters more than people expect. A running sequence is the easiest way to show nothing is missing if anyone ever asks, and it stops two invoices from sharing a number. If you want a layout to copy, the free invoice template guide has one, and the free invoice generator builds the PDF for you.

What to leave off

• The words "Tax Invoice" or "VAT Invoice" at the top
• A VAT number. You don't have one yet.
• A VAT line, or a note that the total includes VAT
• 15% added "just in case"

The last one is the mistake I'd worry about most. You can't charge VAT until SARS has issued your number, so adding it early means charging a tax you aren't registered to charge. A VAT-registered client could also try to claim it back as input VAT on a document that isn't a valid tax invoice, and that comes back to you. Quote the price you actually want to be paid and leave it at that.

What a proper tax invoice needs, field by field, is in our SARS tax invoice requirements guide. You'll need it the day you register.

What if my client is VAT registered?

Your invoice carries no VAT, so there's no input VAT for them to claim from it. Most clients care about the total and whether the invoice is clear enough for their bookkeeper, and a well laid out plain invoice does both. If a client insists on a tax invoice, that's really a question about your registration status. You can't issue one until you're a vendor, and you shouldn't register just to satisfy one client.

Does being a sole proprietor, or on turnover tax, make me a VAT vendor?

No. Registering for income tax, for turnover tax or as a sole proprietor is a separate step from registering for VAT, and none of them makes you a vendor on its own. VAT is its own registration, applied for through SARS eFiling. If you've never done it, nothing about your invoices needs to change.

Keep every invoice for five years

Registered for VAT or not, keep a copy of every invoice you issue and every one you receive for at least five years. Electronic copies are fine as long as you can find them and read them. A folder of PDFs works if you name them consistently, and invoicing software does it for you.

When this changes

Two things move you from a plain invoice to a tax invoice: you cross the R2.3 million threshold, or you choose to register voluntarily and SARS approves it. Until SARS issues your VAT number, keep invoicing without VAT. After that, change your template straight away: "Tax Invoice" at the top, your VAT number, the VAT amount shown on its own line, and your client's details. The step-by-step eFiling registration guide covers the registration itself, and the VAT201 guide covers filing once you're in.

If you're a long way from the threshold you can ignore all of this for now. If you're getting close, keep a running total of what you've invoiced over the last 12 months so it doesn't surprise you. Invo's revenue by period report (Solo plan and up) gives you that figure.

Doing this in Invo

Invo's Free plan covers the whole job for a business that isn't VAT registered: 5 invoices and 5 quotes a month, PDFs, sending by email or a WhatsApp link, recording payments and a pay link your client can open. The document is headed "Invoice" when it carries no VAT and "Tax invoice" when it does, so you don't have to remember to change anything. When SARS issues your number, add it in your business settings and turn VAT on for the lines that attract it. The free plan page has the details, and you can compare plans on the pricing page.

Once the invoice is out, the next job is getting paid. Our guides to getting paid faster and to the most common invoicing mistakes cover that, and invoice vs quote explains which document to send first.

Questions people ask

Can I write "Tax Invoice" on it anyway? No. That heading means the document meets the VAT Act's requirements, and only a registered vendor can issue one.

Do I need a VAT number on my invoice? Not if you aren't registered. You don't have one to show.

Can I add VAT if my client asks me to? No. You can't charge VAT until SARS has issued your number.

What happens if I go over R2.3 million? You have to register. The VAT registration guide explains how and by when.

Should I register voluntarily to look more professional? Registering brings VAT returns and record keeping you may not need yet. The same guide covers when it pays off.