Why this matters
When your VAT-registered client receives your invoice, they'll try to claim the VAT back from SARS as input tax. SARS will only allow that claim if your invoice meets all legal requirements. If it doesn't, your client gets rejected — and they'll come back to you for a corrected invoice, or refuse to pay until you fix it.
Two types of tax invoices
SARS distinguishes between a full tax invoice (required when the invoice value exceeds R5,000 including VAT) and an abridged tax invoice (for amounts under R5,000). For most B2B transactions, you'll be issuing full tax invoices.
Required fields on a full tax invoice
- The words "Tax Invoice" clearly displayed
- Your name, address, and VAT registration number
- Your client's name and address (and their VAT number if they're registered)
- A unique, sequential invoice number
- The date of issue
- A clear description of goods or services supplied
- The quantity or volume of each item
- The unit price of each item
- The VAT rate applied to each line
- The VAT amount shown separately — not just "incl. VAT"
- The total amount including VAT
Zero-rated and exempt supplies
If you supply zero-rated goods (like certain exported services), you still need a tax invoice — but the VAT amount will be R0. The invoice must indicate VAT at 0% applies, not simply omit the VAT line.
Timing rules
A tax invoice must be issued within 21 days of the time of supply — generally the earlier of: the date you issued the invoice, or the date you received payment.
Record-keeping requirements
Keep copies of all tax invoices — both issued and received — for 5 years. Electronic copies are acceptable, but they must be retrievable and legible. A good invoicing system stores them automatically.
Correcting a mistake: the credit note
You cannot simply edit and resend an invoice. You must issue a credit note to cancel the original, then issue a new correct invoice. The credit note must reference the original invoice number and be issued to the same party.