If you're VAT registered, the words "Tax Invoice" on a document aren't decoration — they're a legal claim that the document meets the VAT Act's requirements. Get it wrong and your customer can't claim their input VAT, which is a fast way to lose business customers.
A full tax invoice (R5,000 and over) must show
1. The words "Tax Invoice", "VAT Invoice" or "Invoice". 2. Your name, address and VAT registration number. 3. The customer's name, address and VAT number (if they're registered). 4. A serial number (invoice number) and the date. 5. A description of the goods or services (and quantity or volume). 6. The amount — either VAT shown separately, or a statement that VAT is included at 15%.
Under R5,000: the abridged version
For invoices below R5,000 (including VAT), SARS accepts an abridged tax invoice: your details, the words "Tax Invoice", the serial number and date, a description, and the VAT-inclusive amount with the VAT shown or stated. The customer's details aren't required. Under R50, a till slip is enough.
Not VAT registered? Then never say "Tax Invoice"
If you aren't a VAT vendor, issuing something called a "Tax Invoice" (or showing VAT) is unlawful. Your document is simply an invoice, with no VAT line. Charging VAT without being registered is a criminal offence — and surprisingly common among new businesses copying a template.
Beyond the legal minimum: the letterhead
The VAT Act sets the floor; credibility sets the ceiling. A professional invoice header also carries:
- Your company registration number (customers use it to verify you at CIPC — increasingly a procurement requirement).
- A physical address and contact details — large customers' AP departments often refuse to load suppliers without them.
- Your banking details — on the invoice itself, so payment doesn't wait for a separate email (and so a fraudster can't slip fake banking details into the gap).
- A payment reference (the invoice number), so you can actually match the deposit when it arrives.
Mistakes that get input VAT disallowed
- Missing VAT number, or a VAT number that doesn't verify.
- No sequential invoice number.
- "Tax Invoice" wording missing on a document over R50.
- Handwritten or edited amounts.
- Quotes or pro forma invoices claimed as tax invoices — a pro forma is a request for payment, not a tax invoice; the real tax invoice follows on supply or payment.
One-click compliance
360books builds all of this in: your letterhead (registration number, address, phone, email) and VAT number render automatically on every invoice, quote and pro forma; invoice numbers are sequential; VAT is itemised per line; your banking details and payment reference appear on the document; and every invoice carries a secure "View & pay" link so customers can pay by EFT or card without emailing you first.