For those clients registered for VAT it is important to be aware that SARS is becoming increasingly strict with ensuring invoices are correctly completed. Should invoices not contain the following particulars it is more than likely that SARS will disallow any VAT input tax to be claimed by the purchaser:
1. The words ‘Tax invoice’, ‘VAT invoice’ or ‘Invoice’
2. The name, address and VAT registration number of the supplier
3. The name, address and where the recipient is a registered vendor, the VAT number of the recipient
4. An individual serialized invoice number and the date of issue
5. An accurate description of the goods and/or services
6. The quantity or volume of the goods or services supplied
7. The value of the supply, the amount of tax charged and the consideration of the supply.
All seven of these criteria need to be met to be able to claim the VAT input. The only exception is where the value of the invoice is less than R 5,000 then points 3 and 6 above are not applicable.
SARS is performing an increasing number of VAT audits so we suggest that all invoices you receive are checked against these criteria at the time of receipt and if not compliant the supplier be requested to issue a compliant invoice prior to you making payment.
