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VAT in a Nutshell

14 Mar

VAT in a Nutshell

Should you receive a communication from SARS stating that an audit will be conducted on your VAT affairs please do not panic.  If you follow the pointers below and ensure that your documentation is in order your records should stand-up to any scrutiny from SARS.

Tax Invoices (Input VAT)

The following information should be reflected on each tax invoice on which you claim input VAT (goods and services supplied to you).

  • The words “TAX INVOICE” must be displayed on the invoice.
  • An invoice number must be reflected.
  • The date the invoice was issued must be reflected.
  • The full name and address of the vendor who supplied you with the goods or service must be displayed.
  • The VAT registration number of the vendor must be displayed.
  • The full name and address (postal address and/or delivery address) of the purchaser (your entity) must be reflected.
  • The VAT registration number of the purchaser must be displayed.
  • Description of the goods or services supplied.
  • The quantity or volume of the goods or services supplied.
  • The value of the supply.
  • The value of the VAT charged to be displayed clearly.
  • A tax invoice must be stated in South African currency (ZAR).

Credit note

  • The words “credit note” in a prominent place.
  • The name, address and registration number of the vendor.
  • The name and address of the recipient (unless the original supply was for R3 000 or less).
  • The date issued.
  • The amount of the credit and the VAT.
  • A brief explanation of circumstances.
  • Reference to the original transaction (e.g. invoice number and date).
  • Credit notes do not have to display serialised numbers.

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