VAT requirements by law regarding invoices for input and output

SARS has been doing many VAT Reviews and therefore it is of utmost importance that you make sure of your requirements for your invoices that you issue and receive:

Sonja-Steenkamp-(46-of-112)The following information must be shown on a tax invoice if the payment for the delivery of a service or product exceeds the amount of R5000 South African currency (unless it’s a zero rated service):

–              The word “tax invoice”

–              The name, address and VAT registration number of the supplier of the service/product

–              The name, address and VAT registration number of the receiver of the service/product

–              A unique consecutive invoice number and date on which the tax invoice was made out

–              A comprehensive understandable description of the service or product delivered.  This includes second-hand products.

–              The value of the service or product delivered, the amount VAT on it, and the total amount paid or a declaration that the total amount on the invoice includes 14% VAT.

If the payment of a service or product is less than R5000 a shortened invoice can be issued indicating the following:

–              The word “tax invoice”

–              The date on which the invoice is issued.

–              The name, address and VAT registration number of supplier

–              A unique consecutive invoice number and date on which the tax invoice was made out

–              A description of service or product delivered.  This includes second-hand products.

–              The value of the service or product delivered, the amount VAT on it, and the total amount paid.

Interestingly you are required to know if a supplier’s VAT number is valid.  We suggest that you verify certain VAT numbers of Vendors/Suppliers.  This can be done at www.sarsefiling.co.za  Click on Quick Links and
Choose VAT vendor search.  Type in the VAT number that appears on the invoice and the system will inform you if the VAT number and Vendor still exist.