A tax invoice is an ordinary invoice that additionally meets the specific content requirements SARS prescribes - VAT number, VAT amount shown separately, and other prescribed details - so the buyer can use it to claim input VAT.
What it means
Not every invoice qualifies as a tax invoice. Below a value threshold the requirements are relaxed (an abridged tax invoice), but above it, missing any required field can invalidate the buyer's input VAT claim on that purchase.
Where it fits in
Tax invoices are the documentary backbone of the VAT system - every output VAT charged and every input VAT claimed on a VAT201 return should trace back to a valid tax invoice.
Key rules
- Must show the VAT number, VAT amount and other SARS-prescribed details.
- Required to support a buyer's input VAT claim.
- Relaxed requirements apply below a value threshold (abridged tax invoice).
- Missing required fields can invalidate the input VAT claim.
