WHAT INFO IS REQUIRED ON A VALID VAT INVOICE?

Are you making sure that your VAT Input deductions are supported by valid Tax Invoices?

SARS states on its website: “Without a proper tax invoice a business cannot deduct input tax on business expenses.”

This is a simple yet important statement. Simple, because if all your VAT input claims are supported by valid source documents AND filed for easy access during a SARS VAT Audit, then it will avoid the important non-compliance implication of SARS levying Fines and Penalties AND it will also avoid the amount of precious business time wasted trying to correct the non-compliance.

VAT Input is a deduction that registered VAT vendors (businesses) are allowed to make against the VAT Output they need to pay to SARS on their vatable supplies (sales) made.

What type of invoices can I claim on?

In order for a tax invoice to be valid in terms of the VAT Act, it must have certain details reflected on the document as set out in section 20(4) and (5) of the VAT Act. From 6 January 2018, SARS categorises 3 types of documents and their criteria based on the threshold amount including VAT that are allowed for a VAT Input deduction:

1. Full Tax Invoice > R5000
• Contains the words “Tax Invoice”, “VAT Invoice” or ”Invoice”
• The Suppliers name, address and VAT Registration number
• The Business name, address and VAT Registration number
• Serial number of the invoice
• Date of issue of the invoice
• Accurate description of the goods and / or services
• Quantity or volume supplied
• Value of the supply and the amount of VAT
2. Abridged Tax Invoice >R50 and =< R5000
• Contains the words “Tax Invoice”, “VAT Invoice” or ”Invoice”
• The Suppliers name, address and VAT Registration number
• Serial number of the invoice
• Date of issue of the invoice
• Accurate description of the goods and / or services
• Value of the supply and the amount of VAT
3. Receipt / Till Slip >R50
• A tax invoice is not required, however a document such as a till slip or sales docket indicating the VAT charged by the supplier will be required to verify the VAT claimed. The Supplier’s name and VAT number should be reflected on the slip

AstraFin would be able to assist you to install and maintain a business process to keep track of your valid Tax Invoices and / or review your current VAT compliance. Please contact us to arrange a suitable time.