09 Jul 2018

Vat Invoice Guidelines

The most basic requirement for SARS to allow an “input” for Vat purposes is the requirement that the vendor needs to have a valid tax invoice. There are some criteria that needs to be met in order for the invoice to qualify as valid.  SARS allows for a distinction between the invoice types and this is based on the value of the supply or invoice amount. There are there categories of invoice based on their value, these are.

  • Under R50
  • R50 – R5000
  • Exceeds R5000

In order to determine the requirements click here for the checklist: Tax Invoice Check-List

Being able to supply a “valid tax invoice” will ensure that your vat input (deduction) stands up to the SARS auditor should your return be selected for review. A common misconception is that a bank statement entry / quote or pro-forma will meet the SARS requirements on audit. Without a valid tax invoice SARS has the right to reverse the vat input. There are unique and specific circumstances where another document would be acceptable to SARS, however these are quote specific and for the purposes of this article we are not going to cover those.

If you have any questions about Vat requirements and returns contact us as we have a department that deals with Vat that can assist you.