A tax invoice in South Africa is the document a VAT vendor issues to support a taxable supply, and the document the buyer needs to claim input tax. It must carry the words “Tax Invoice” (or “VAT Invoice” or “Invoice”), the supplier’s name, address and VAT number, a serial number and date, a description of what was supplied, and the price and VAT.
Which details are needed depends on the amount. Above R5,000 (including VAT) a full tax invoice is required; below that an abridged invoice may be issued; below R50 no tax invoice has to be issued. The rules are in SARS’s VAT 404 Guide for Vendors. This page covers both what to put on an invoice and what to check on one you receive.
Business Requirements at a Glance
A full tax invoice must show:
- The words “Tax Invoice”, “VAT Invoice” or “Invoice”
- The name, address and VAT registration number of the supplier
- The name, address and VAT registration number of the recipient
- A serial number and the date of issue
- A full and proper description of the goods or services
- The quantity or volume supplied
- The price and the VAT, shown by one of the approved methods
SARS’s own VAT invoice checklist says all seven criteria must be met for a full tax invoice, including the recipient’s VAT number where the recipient is a vendor.
An abridged tax invoice carries the same details except that the recipient’s name, address and VAT number and the quantity or volume need not be shown. It may be used below R5,000, but not for zero-rated supplies.
The price and VAT can be shown in three approved ways: every individual amount; the total consideration plus the VAT rate charged; or the total consideration plus the VAT charged.
Registration and Legal Requirements
From 1 April 2026 the compulsory registration threshold is R2.3 million and the voluntary threshold is R120,000, as set out on the SARS VAT page.
As a buyer, confirm that the supplier is registered before you rely on the invoice. SARS provides a VAT vendor search option on its VAT page, described in the SARS FAQs for VAT vendors.
Without a proper tax invoice, or an alternative document approved by the Commissioner, a vendor cannot deduct input tax. In limited cases the Commissioner may direct that a tax invoice need not be issued, or that some particulars may be left out, where that is impractical and other records are sufficient. Do not assume that applies to you; ask SARS.
Documents and Ownership Information Required
A vendor needs to be able to produce, for each transaction:
- The supplier’s tax invoice, or an abridged invoice where that is allowed
- Any credit note or debit note, which must show the words “credit note” or “debit note”, the vendor’s name, address and VAT number, the recipient’s name and address, the date, and the amount by which the value and VAT are changed
- The supporting records for the transaction
Input tax is allowed only in the tax period in which the prescribed or acceptable documentary proof is obtained. Proof of payment alone is not the same as a valid tax invoice.
Tax, Licence and Compliance Requirements
The recipient uses the tax invoice to support an input tax deduction, so a defect on the invoice becomes the buyer’s problem if SARS disallows the claim.
Check each invoice you receive against the list above: the supplier’s VAT number, your own details where a full invoice is required, a real description rather than “services rendered”, the quantity, and the price and VAT. Ask for a corrected invoice straight away if anything is wrong.
The VAT 404 guide also deals with entertainment and motor-car input tax rules. Those are not covered here; check the current position with SARS before claiming.
Process, Deadlines and Ongoing Obligations
A tax invoice for a standard-rated supply should be issued within 21 days of the time of supply. An input tax deduction must be made in a tax period falling within five years after the period in which the invoice should have been issued.
Vendors must keep records of documentary proof and other transaction records for at least five years.
The registration thresholds and any VAT rule can change. SARS’s VAT 404 guide is Issue 15 and some of its passages predate the 1 April 2026 threshold change, so use the SARS VAT page for current thresholds.
Frequently Asked Questions
What must a tax invoice in South Africa show?
The words “Tax Invoice”, “VAT Invoice” or “Invoice”; the supplier’s name, address and VAT number; the recipient’s name, address and VAT number; a serial number and date; a full description; the quantity or volume; and the price and VAT.
When is a full tax invoice required?
Where the consideration is more than R5,000 including VAT. Below that an abridged tax invoice may be issued, though not for zero-rated supplies. Below R50 no tax invoice has to be issued.
How do I check that a supplier is VAT registered?
Use the VAT vendor search option on the SARS VAT page.
Is proof of payment enough to claim input tax?
No. A vendor cannot deduct input tax without a proper tax invoice or an alternative document approved by the Commissioner.
How long can I claim input tax on an invoice?
The deduction must fall in a tax period within five years after the period in which the invoice should have been issued, and the invoice should be issued within 21 days of the time of supply.
What if SARS disallows a claim I believe is valid?
The time limits and process for objection and appeal are not covered in the sources used for this page. Ask SARS or a registered tax practitioner promptly.
Confirm all VAT requirements with SARS. See company registration requirements and browse all business and compliance requirements.