First: are you a VAT vendor?
VAT in South Africa is currently charged at 15%. You must register for VAT with SARS once your taxable turnover exceeds R1 million in any consecutive 12-month period. Below that threshold, registration is voluntary — and until you are registered, your invoices must not charge or mention VAT. Once registered, every invoice you issue for a taxable supply must meet SARS's tax invoice requirements, because your customers rely on them to claim their own input VAT.
The required fields on a full tax invoice
For any supply of R5,000 or more, SARS requires a full tax invoice. It must contain all of the following:
- The words “Tax Invoice” in a prominent place
- Your business name, address and VAT registration number
- The customer’s name, address and VAT number (if they are a vendor)
- A unique, sequential invoice number
- The date the invoice is issued
- A full description of the goods or services supplied
- The quantity or volume of goods / services
- The price, the VAT amount, and the total — or a statement that the price includes VAT at 15%
For supplies under R5,000, an abridged tax invoice is allowed — the customer's name and VAT number may be left off, but everything else still applies. Keep copies of every invoice you issue for at least five years.
Common mistakes to avoid
Charging VAT before you are registered
You may only charge VAT and issue tax invoices once SARS has registered you as a VAT vendor. Before that, your invoices must not show VAT at all.
Calling a quote or pro-forma an invoice
A pro-forma invoice or quote is not a tax invoice. Only issue a tax invoice once the supply has actually been made — and label it clearly.
Skipping the sequential numbering
SARS expects a unique, sequential invoice series. Gaps or duplicates are a red flag in a VAT review and make your own bookkeeping harder.
Mixing VAT-inclusive and VAT-exclusive pricing
Pick one approach per invoice and state it clearly. Confusing the two is the most common reason small businesses over- or under-charge.
Good to know: this guide is a practical summary, not tax advice. Rules and thresholds can change — always confirm the current requirements on sars.gov.za or with your accountant before relying on them.