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Creating valid invoices

In South Africa, there are two main types of invoices that are considered valid by SARS. These are full tax invoices and abridged invoices. In this guide, we will discuss the differences between these two types of invoices.

Invoices vs Abridged Invoices

Full tax invoices are required for transactions with a value of R5000.00 or more (including VAT). Abridged invoices are permitted for transactions with a value greater than R50.00 and less than R5000.00 (including VAT).

Full Tax Invoices

Full tax invoices are comprehensive documents that provide a detailed breakdown of a transaction between a buyer and a seller. These invoice are required to contain:

  1. The words “Tax Invoice”, “VAT Invoice” or “Invoice”
  2. Name, address and VAT registration number of the supplier
  3. Name, address and where the recipient is a vendor, the recipient’s VAT registration number
  4. Serial number and date of issue of invoice
  5. Accurate description of goods and /or services (indicating where applicable that the goods are second hand goods)
  6. Quantity or volume of goods or services supplied
  7. Value of the supply, the amount of tax charged and the consideration of the supply (value and the tax)

Abridged Invoices

Abridged invoices, on the other hand, are simplified versions of regular invoices. They are commonly used for transactions with lower values or for quick payment requests. Abridged invoices may contain less detailed information but still capture essential elements like:

  1. The words “Tax Invoice”, “VAT Invoice” or “Invoice”
  2. Name, address and VAT registration number of the supplier
  3. Serial number and date of issue of invoice
  4. Accurate description of goods and /or services (indicating where applicable that the goods are second hand goods)
  5. Value of the supply, the amount of tax charged and the consideration of the supply (value and the tax)

Complying with SARS

Understanding the distinctions between regular invoices, abridged invoices, and adhering to the SARS valid invoice checklist is crucial for businesses to maintain transparency, ensure legal compliance, and streamline financial processes.

We’ve got you covered

By using invoicelink, you can rest assured that we will ensure that the invoices you produce are always valid.

When you use our Quick Links feature, which is enabled for payment requests up to R5000.00, we automatically produce an abridged invoices for you. This means that the only information we need to collect from you is the description of the goods or services you are requesting payment for and the amount.

For any other transactions, we allow you to generate comprehensive invoices that contain all the information required by SARS. We also allow you to customise the invoice according to your brand identity as well as turn them into templates that can be reused later.