Updated tax invoice requirements

In terms of section 20(1) of the VAT Act, it is the duty of any registered vendor supplying taxable goods to another person / vendors, to issue a tax invoice within 21 days of the supply. New requirements in terms of tax invoicing came into effect on 8 January 2016. Without a proper tax invoice a business cannot deduct input tax on business expenses.
A business is required to issue a full tax invoice when the invoiced price is more than R5 000 (referred to as consideration for the supply) and may issue an abridged tax invoice when the consideration for the supply is R 5 000 or less. A tax invoice is not required if the consideration for the supply is R50 or less. However, a document such as a till slip or sales docket indicating the VAT charged by the supplier will be required to verify the input tax deducted.

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