A VAT number is issued by SARS when a business successfully registers for VAT, either voluntarily or because its turnover crossed the compulsory registration threshold. It must appear on every tax invoice the vendor issues.
What it means
Without a valid VAT number on an invoice, the buyer cannot claim input VAT on that purchase, so an incorrect or missing VAT number is a common cause of rejected input VAT claims.
Where it fits in
The VAT number identifies the vendor on every VAT201 return filed and on every tax invoice issued or received, tying the business's sales and purchase records back to its SARS VAT profile.
Key rules
- Issued by SARS on successful VAT registration.
- Must be shown on every tax invoice the vendor issues.
- Required by the buyer to support an input VAT claim.
- Distinct from the business's income tax reference number.
