🇿🇦 South Africa Guide

Invoice Tips for South Africa

Everything you need to know about VAT invoicing, SARS compliance, and best practices for South African businesses.

Understanding VAT in South Africa

Value-Added Tax (VAT) is a consumption tax levied on goods and services in South Africa. The current standard rate is 15%. If you're a VAT-registered vendor, you must issue tax invoices that meet specific SARS requirements.

VAT Registration Thresholds

R1,000,000

Compulsory registration – You must register if taxable supplies exceed this in 12 months

R50,000

Voluntary registration – You may register if taxable supplies exceed this in 12 months

What Must a VAT Invoice Include?

According to SARS, a full tax invoice (for supplies over R5,000) must contain the following:

Your business name and address
Your VAT registration number
Customer's name and address
Invoice date and unique invoice number
Description of goods or services
Quantity and price of each item
Total amount excluding VAT
VAT amount (at 15%)
Total amount including VAT

Note: For supplies of R5,000 or less, an abridged tax invoice with fewer details is acceptable.

Essential Invoicing Tips for SA Businesses

Register for VAT When Required

You must register for VAT if your taxable turnover exceeds R1 million in any 12-month period. Voluntary registration is possible if turnover exceeds R50,000.

Use Sequential Invoice Numbers

SARS requires invoices to be numbered sequentially. Use a consistent format like INV-2024-001 to maintain proper records.

Keep Records for 5 Years

South African law requires you to keep all invoices and financial records for at least 5 years for tax purposes.

Issue Invoices Within 21 Days

VAT invoices should be issued within 21 days of supplying goods or services to remain compliant.

Common Invoicing Mistakes to Avoid

Missing VAT registration number on invoices
Incorrect VAT calculations (must be exactly 15%)
Not including all required information
Using non-sequential invoice numbers
Not keeping copies of all invoices
Issuing invoices late (after 21 days)
Mixing ZAR with foreign currencies incorrectly
Not specifying payment terms clearly

Including Bank Details on Invoices

For South African businesses, it's standard practice to include your banking details on invoices to facilitate EFT (Electronic Funds Transfer) payments. Include the following:

  • Bank name (e.g., FNB, Standard Bank, Nedbank, ABSA, Capitec)
  • Account holder name
  • Account number
  • Branch code (universal codes work for most banks)
  • Account type (Cheque/Current, Savings, etc.)

Create SARS-Compliant Invoices

Our invoice generator includes all required fields for South African VAT compliance.