VAT Invoice Template South Africa
Create SARS-compliant tax invoices that meet all Section 20 requirements. Full and abridged invoices explained with examples.
Section 20 compliance
Section 20 of the Value-Added Tax Act 89 of 1991 sets out exactly what must appear on a tax invoice. Missing even one required field can disqualify your client from claiming input VAT.
Two types of VAT invoice
The VAT Act distinguishes between two types of tax invoice based on the total amount:
Full tax invoice (over R5,000 incl. VAT)
Required for supplies exceeding R5,000 including VAT. Must include both the supplier's and recipient's details. Section 20(4) of the VAT Act.
Abridged tax invoice (R5,000 or less incl. VAT)
Simplified invoice for smaller amounts. The recipient's name, address, and VAT number are not required. Useful for retail and service businesses with many small transactions.
Full tax invoice requirements (Section 20)
- The words 'Tax Invoice' displayed prominently
- Supplier's name, address, and VAT registration number
- Recipient's name, address, and VAT number (for invoices over R5,000)
- Unique serial/invoice number
- Date of issue
- Description of goods or services supplied
- Quantity or volume of goods (where applicable)
- Value of supply excluding VAT
- Rate of VAT charged (15% standard or 0% zero-rated)
- Amount of VAT charged
- Total consideration including VAT
Abridged tax invoice requirements
- The words 'Tax Invoice'
- Supplier's name, address, and VAT registration number
- Unique serial/invoice number
- Date of issue
- Description of goods or services
- The total consideration including VAT
- A statement that VAT is included (e.g., 'incl. 15% VAT')
Example: Full VAT invoice
An actual VAT invoice generated by wabill.
VAT registration thresholds
Common VAT invoice mistakes
- Missing the words 'Tax Invoice'. SARS requires this exact phrase.
- Not showing your VAT number. The buyer cannot claim input VAT without it.
- Incorrect VAT calculation. It must be exactly 15% of the excl. VAT amount.
- Missing buyer details on invoices over R5,000. These are required for full tax invoices.
- Charging VAT when not registered. This is illegal and can result in penalties.
- Not issuing within 21 days of supply. This is the Section 20(1) deadline.
Create VAT invoices on WhatsApp
When you enable VAT in your wabill settings, all invoices automatically include the required Section 20 fields. Just describe the job:
“Invoice Dlala Media for March consulting 40 hours at R950, workshop R8,500, travel R1,200”
wabill calculates VAT and formats a SARS-compliant tax invoice. 10 free documents to start, then R49/month.
FAQ
What is the difference between a tax invoice and a regular invoice?
A tax invoice is specifically required by the VAT Act 89 of 1991 for VAT-registered vendors. It must include your VAT number, the VAT amount, and amounts excl./incl. VAT. A regular invoice is for non-VAT-registered businesses and doesn't include VAT breakdown.
When can I issue an abridged tax invoice?
Under Section 20(4) of the VAT Act, you can issue an abridged (simplified) tax invoice when the total including VAT is R5,000 or less. It requires fewer details than a full tax invoice. The buyer's name and VAT number are not required.
Must I keep copies of all tax invoices?
Yes. Section 55 of the VAT Act requires you to keep all tax invoices (issued and received) for 5 years. SARS can request these during an audit. wabill stores all your invoices digitally.
What if I issue an incorrect VAT invoice?
Issue a credit note under Section 21 of the VAT Act referencing the original invoice, then issue a corrected tax invoice. Never delete or overwrite the original. Maintain the audit trail.
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