Invoice generator (South Africa)
South African VAT rules distinguish between a full tax invoice and an abridged tax invoice, and which you must issue depends on the value of the supply.
This generator produces invoices in rand with the fields SARS requires.
Full versus abridged tax invoices
SARS sets a value threshold. Above it, a full tax invoice is required, which must include the recipient's name, address and VAT number as well as the supplier's.
Below the threshold an abridged tax invoice is acceptable, which omits some of the recipient's details. Very small supplies may not require a tax invoice at all.
The safest practice for business-to-business supply is to issue a full tax invoice regardless — your customer needs the detail to claim input tax, and issuing the fuller document never causes a problem.
What a full tax invoice must show
- The words Tax Invoice.
- Supplier name, address and VAT registration number.
- Recipient name, address and VAT number.
- A serial number and the date of issue.
- A description of the goods or services, and the quantity or volume.
- The value of the supply, the VAT charged, and the total — or the total with a statement that it includes VAT at the applicable rate.
Zero-rated and exempt supplies
Certain supplies are zero-rated, including exports and some basic foodstuffs. Others are exempt, such as certain financial and educational services.
The distinction affects your own input tax position: you can generally claim input tax on costs relating to zero-rated supplies, but not on those relating to exempt supplies. Where an invoice mixes categories, indicate clearly which lines carry VAT.
Registration
VAT registration becomes compulsory once taxable turnover exceeds the SARS threshold in a twelve-month period, and voluntary registration is possible above a lower threshold.
If you are not registered, do not issue a document headed “Tax Invoice” and do not charge VAT. Head it “Invoice” and show the total with no VAT line.
Frequently asked questions
What is the difference between a full and abridged tax invoice?
A full tax invoice includes the recipient's name, address and VAT number and is required above the SARS value threshold. An abridged tax invoice omits some recipient detail and is acceptable below it.
What must a South African tax invoice include?
The words Tax Invoice, supplier name, address and VAT number, recipient details, a serial number and date, a description of the supply with quantity, and the value, VAT charged and total.
Can I issue a tax invoice if I am not VAT registered?
No. Head the document Invoice rather than Tax Invoice, show the total with no VAT line, and do not charge VAT.
What is the difference between zero-rated and exempt supplies?
Both carry no VAT on the sale, but you can generally claim input tax on costs relating to zero-rated supplies and not on those relating to exempt supplies.
Should I issue a full tax invoice even below the threshold?
For business customers, yes. They need the fuller detail to claim input tax, and issuing more information than required never causes a problem.