A VAT compliant invoice is what lets your client actually claim the VAT you charged them back from SARS. Miss a required field and the invoice doesn't count as a valid tax invoice, no matter how professional it looks.
Why this matters
When a VAT-registered client receives your invoice, they use it to claim the VAT back from SARS as input tax, and SARS only allows that claim if your invoice meets every legal requirement. Miss one, and the claim gets rejected. Your client comes back to you for a corrected invoice, and may hold payment until you send it.
Three tiers of tax invoice
SARS sets the required detail by transaction value, based on the VAT-inclusive amount. At R50 or less, no tax invoice is required, though your client still needs a till slip or sales docket showing the VAT to claim it. Between R50 and R5,000, an abridged tax invoice applies, which leaves out the client's details. Above R5,000, you need the full version, and a zero-rated supply also needs a full tax invoice. Most B2B invoicing sits above that line, so that's the focus here.
Required fields on a full tax invoice
- The words "Tax Invoice", "VAT Invoice" or "Invoice"
- Your name, address, and VAT registration number
- Your client's name and address, plus their VAT number if they're a registered vendor
- An individual serial number and the date of issue
- A description of the goods or services supplied (and a note if the goods are second-hand)
- The quantity or volume supplied
- The value of the supply, the VAT charged, and the total including VAT
Amounts have to be in rand. Unit price and a VAT rate on each line aren't on SARS's checklist, but including them makes the invoice easier for your client to check. If the VAT was worked out from a VAT-inclusive price, the Act also allows a statement that the total includes VAT, together with the rate.
Zero-rated and exempt supplies
Zero-rated supplies, such as exported goods, still need a full tax invoice. The VAT amount on it will be R0, and the invoice should show that VAT at 0% applies rather than leaving the VAT line out entirely.
Timing rules
A VAT vendor must issue the tax invoice within 21 days of the date of the supply.
Record-keeping requirements
Keep copies of every tax invoice, both issued and received, for 5 years. Electronic copies are fine as long as they stay retrievable and legible. A proper invoicing system stores them for you automatically, and you can see what a finished invoice looks like with our free invoice generator, no signup required. For the full process from quote to payment, see how to create an invoice, and note that a quote is not a tax invoice.
Are PDF and emailed invoices valid?
Yes. SARS accepts electronic tax invoices, including PDFs sent by email and invoices generated by accounting or invoicing software, as long as every required field is present and the document can't be altered after it's issued. There's no prescribed format or approved platform. A secured, locked PDF works. An editable Word or Excel file is a weaker choice, since nothing stops it being changed after the fact.
Correcting a mistake: credit notes and debit notes
You can't just edit and resend a tax invoice once it's issued. If you charged too much, issue a credit note. If you charged too little, issue a debit note. Both correct the original rather than replacing it, and both carry their own required particulars under section 21 of the VAT Act, including your details, the client's details, a serial number and date, the reason, and the adjusted amounts and VAT.
A credit or debit note should reference the original invoice number and go to the same client that received the original. Invo generates credit notes directly from the original invoice, so the reference and totals stay linked automatically. See how it works on the features page.
Frequently asked questions
Do I need special software to issue a valid tax invoice? No. SARS doesn't require a specific platform. A properly formatted PDF or Word document is legally valid, as long as every required field is on it and it stays unaltered after you send it. Software mainly protects you from the small mistakes: a missing field, a duplicated invoice number, VAT calculated by hand and slightly wrong.
What if I've already sent an invoice missing a required field, like my VAT number? Correct it with a credit note referencing the original, then issue a new, complete invoice. Don't edit the original file and resend it under the same invoice number.
Do I still need a tax invoice for a zero-rated sale? Yes. Every required field still applies, with the VAT rate shown as 0% rather than left off the invoice entirely.
Once I've charged VAT, how do I actually pay it over to SARS? Through a VAT201 return filed via eFiling, on a two-monthly cycle for most small businesses. Our step-by-step VAT201 guide covers preparing your figures, submitting, and paying on time.
