A VAT (tax) invoice is the document a vendor must issue for taxable supplies where the consideration exceeds R50, within 21 days of the supply. It must carry the particulars set out in section 20 of the Value-Added Tax Act 89 of 1991. Around R5,000 the form changes: a full tax invoice at the top end, and a shorter abridged tax invoice below it (SARS VAT 404 guide).
Here are the particulars for each form, when a credit or debit note applies, and what documents apply to imports.
Business Requirements at a Glance
A full tax invoice must show:
- The words “Tax Invoice”, “VAT Invoice” or “Invoice”
- The supplier’s name, address and VAT registration number
- The recipient’s name and address, and the recipient’s VAT number where the recipient is a vendor
- 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 tax charged and the consideration
These particulars are drawn from the SARS VAT invoice checklist. Invoices must be in South African currency, except for zero-rated supplies and certain electronic services by non-residents.
Registration and Legal Requirements
Only a registered VAT vendor can issue a tax invoice. Compulsory registration applies above R2.3 million in taxable supplies in a 12-month period, from 1 April 2026. See our guide to VAT registration requirements, or confirm with SARS.
Which form applies. VAT 404 treats consideration of R5,000 or more as needing a full tax invoice (section 20(4)) and less than R5,000 as allowing an abridged one. The older 2016 SARS checklist says a full invoice is required where the supply exceeds R5,000. If your supply is exactly R5,000, issue the full invoice to be safe.
The abridged tax invoice drops the recipient’s details and the quantity. It must show the words “Tax Invoice”, the supplier’s name, address and VAT number, a serial number and date, a description of the goods or services, and the value, tax and consideration. SARS’s checklist stresses that all five criteria must be met.
Zero-rated supplies always need a full tax invoice, even where the consideration is less than R5,000.
No tax invoice is required for R50 or less, but you still need a till slip or sales docket showing the VAT.
Documents and Ownership Information Required
What a vendor should have in place:
- Your SARS VAT registration number on every invoice, credit note and debit note
- A system producing unique serial numbers
- Customer records, including the VAT numbers of vendor customers, so you can complete full invoices
- A way of issuing a full invoice on request where an abridged one was given
- Records and documentary proof of transactions, kept for at least five years
Credit and debit notes must show the words “credit note” or “debit note”, the vendor’s name, address and VAT number, the recipient’s name and address (unless an abridged invoice was issued), the date, the amount of the alteration, a brief explanation, and a reference that identifies the original tax invoice.
Tax, Licence and Compliance Requirements
An invoice is the basis for the VAT you charge and for the input tax your customers claim. A customer who is a vendor needs a valid tax invoice to support a claim, so ask for a full invoice at the point of sale if you need one.
Imported goods are different. For imports, the input tax document is a bill of entry or other prescribed customs documentation, together with the receipt number for the VAT paid to Customs, or an agent statement that contains it. It is not a supplier’s tax invoice (VAT 404).
Which other port-specific documents you may be given beyond the bill of entry is a customs question; confirm it with SARS Customs or your clearing agent.
Process, Deadlines and Ongoing Obligations
- Issue the tax invoice within 21 days of the supply where the consideration exceeds R50.
- Set up templates for the full tax invoice, abridged tax invoice, credit note and debit note against the particulars above.
- Correct errors with a credit or debit note that references the original invoice, not with a second invoice for the same supply.
- Keep copies and supporting documents for at least five years.
- Check the current rules on the SARS VAT page, because the VAT 404 guide we relied on reflects information as at December 2024.
Frequently Asked Questions
What makes an invoice VAT compliant?
It carries the prescribed particulars for its form: supplier name, address and VAT number, a serial number, the date, a description and the value, tax and consideration. A full invoice adds the recipient’s details and the quantity. Issue it within 21 days of the supply.
When can I use an abridged tax invoice?
Where the consideration is below R5,000 (see the note above on the exact R5,000 boundary). It must still meet all five abridged criteria. Zero-rated supplies always need a full invoice.
Is a tax invoice needed for small purchases?
Not for R50 or less, but a till slip or sales docket showing the VAT is still needed.
Which other documents apply to an import, as opposed to a VAT invoice?
For imported goods, the input tax document is the bill of entry or other prescribed customs documentation and the receipt number for the VAT paid to Customs.
How do I correct an invoice?
Issue a credit note or debit note that identifies the original tax invoice and gives a brief explanation. Do not issue a second invoice for the same supply.
Invoice particulars and thresholds are set in the VAT Act and by SARS and are revised. Confirm current requirements on the SARS VAT page or with a registered tax practitioner. See business and compliance requirements, and our company registration requirements if you are still setting up your business.