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Value-Added Tax Act, 1991 (Act No. 89 of 1991)

Part II - Value-Added Tax

20. Tax invoices

 

(1) Except as otherwise provided in this section, a supplier, being a registered vendor, making a taxable supply (other than a supply contemplated in section 8(10)) to a recipient, must within 21 days of the date of that supply issue a tax invoice containing such particulars as are specified in this section: Provided that—
(i) it shall not be lawful to issue more than one tax invoice for each taxable supply;
(ii) if a vendor claims to have lost the original tax invoice, the supplier or the recipient, as the case may be, may provide a copy clearly marked "copy".

 

(1A) [Subsection (1A) deleted by the Revenue Laws Amendment Act No. 32 of 2004].

 

(2) Where a recipient, being a registered vendor, creates a document containing the particulars specified in this section and purporting to be a tax invoice in respect of a taxable supply of goods or services made to the recipient by a supplier, being a registered vendor, that document shall be deemed to be a tax invoice provided by the supplier under subsection (1) of this section where—
(a) the Commissioner has granted prior approval for the issue of such documents by a recipient or recipients of a specified class in relation to the taxable supplies or taxable supplies of a specified category to which the documents relate; and
(b) the supplier and the recipient agree that the supplier shall not issue a tax invoice in respect of any taxable supply to which this subsection applies; and

(c)        such document is provided to the supplier and a copy thereof is retained by the recipient:

Provided that where a tax invoice is issued in accordance with this subsection, any tax invoice issued by the supplier in respect of that taxable supply shall be deemed not to be a tax invoice for the purposes of this Act.

 

(3) Where a supply of goods is deemed by section 8(10) to be made and both the recipient and the supplier in relation to that supply are registered vendors, the recipient shall, within 21 days after the day on which such supply is deemed by section 9(8) to be made, create and furnish to the supplier a document which contains the particulars specified in this section, and such document shall for the purposes of this Act be deemed to be a tax invoice provided by the supplier under subsection (1) of this section.

 

(4) Except as the Commissioner may otherwise allow, and subject to this section, a tax invoice (full tax invoice) shall be in the currency of the Republic and shall contain the following particulars:
(a) The words "tax invoice", 'VAT invoice' or 'invoice';

[Paragraph (a) amended by section 26(a) of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]

(b) the name, address and VAT registration number of the supplier;
(c) the name, address and where the recipient is a registered vendor, the VAT registration number of the recipient;
(d) an individual serialized number and the date upon which the tax invoice is issued;
(e) full and proper description of the goods (indicating, where applicable, that the goods are second-hand goods) or services supplied;
(f) the quantity or volume of the goods or services supplied;
(g) either—
(i) the value of the supply, the amount of tax charged and the consideration for the supply; or
(ii) where the amount of tax charged is calculated by applying the tax fraction to the consideration, the consideration for the supply and either the amount of the tax charged, or a statement that it includes a charge in respect of the tax and the rate at which the tax was charged:

Provided that the requirement that the consideration or the value of the supply, as the case may be, shall be in the currency of the Republic shall not apply to a supply that is charged with tax under section 11.

 

(5) Notwithstanding anything in subsection (4), where the consideration in money for a supply does not exceed R5 000, a tax invoice (abridged tax invoice) shall be in the currency of the Republic and shall contain the particulars specified in that subsection or the following particulars:
(a) The words "tax invoice", 'VAT invoice' or 'invoice';

[Paragraph (a) amended by section 26(b) of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]

(b) the name, address and VAT registration number of the supplier;
(c) an individual serialized number and the date upon which the tax invoice is issued;
(d) a description of the goods (indicating, where applicable, that the goods are second-hand goods) or services supplied;
(e) either—
(i) the value of the supply, the amount of tax charged and the consideration for the supply; or
(ii) where the amount of tax charged is calculated by applying the tax fraction to the consideration, the consideration for the supply and either the amount of the tax charged, or a statement that it includes a charge in respect of the tax and the rate at which the tax was charged:

Provided that this subsection shall not apply to a supply that is charged with tax under section 11.

[Subsection (5) amended by section 29 of the Tax Administration  Amendment Act, 2012 (Act No. 21 of 2012)

 

(5A) Notwithstanding anything to the contrary in subsections (4) and (5), where a vendor acquires an enterprise from another vendor and as a result of that acquisition, the supplying vendor immediately ceases to be a vendor, and the purchasing vendor, within a period of six months from the date of the acquisition, issues or receives a tax invoice in respect of the acquired enterprise, that tax invoice may reflect the name, address and VAT registration number of the supplying vendor.

 

(5B) Notwithstanding any other provision of this Act, if the supply by a vendor relates to any enterprise contemplated in paragraph (b)(vi) of the definition of  "enterprise" in section 1, the vendor shall be required to provide a tax invoice containing such particulars as must be prescribed by the Minister by regulation.

[Subsection 5(B) substituted by section 99(1) of Act No. 43 of 2014]

 

(6) Notwithstanding any other provision of this Act, a supplier shall not be required to provide a tax invoice if the total consideration for a supply is in money and  does  not exceed R50 : Provided that the supplier shall provide the recipient with a document as is acceptable to the Commissioner.

 

(7) Where the Commissioner is satisfied that there are or will be sufficient records available to establish the particulars of any supply or category of supplies, and that it would be impractical to require that a full tax invoice be issued in terms of this section, the Commissioner may, subject to such conditions as the Commissioner may consider necessary, direct—
(a) that any one or more of the particulars specified in subsection (4) or (5) shall not be contained in a tax invoice; or
(b) that a tax invoice is not required to be issued, or
(c) that the particulars specified in subsection (4) or (5) be furnished in any other manner.

 

(8) Notwithstanding anything in this section, where a supplier makes a supply (not being a taxable supply) of second-hand goods or of goods as contemplated in section 8(10) to a recipient, being a registered vendor, the recipient shall, in the form as the Commissioner may prescribe, maintain a declaration by the supplier stating whether the supply is a taxable supply or not and shall further maintain sufficient records to enable the following particulars to be ascertained:
(a)
(i) The name of the supplier and—
(aa) where the supplier is a natural person, his identity number; or
(bb) where the supplier is not a natural person, the name and identity number of the natural person representing the supplier in respect of the supply and any legally allocated registration number of the supplier:

Provided that the recipient—

(A) shall verify such name and identity number of any such natural person with reference to his identity document, as contemplated in section 1 of the Identification Act, 1997 (Act No. 68 of 1997), and retain a photocopy of such name and identity number appearing in such identity document; or
(B) shall verify such name and registration number of any supplier other than a natural person with reference to its business letterhead or other similar document and retain a photocopy of such name and registration number appearing on such letterhead or document; and
(ii) the address of the supplier;
(b) the date upon which the second-hand goods were acquired or the goods were repossessed or surrendered, as the case may be;
(c) a description of the goods;
(d) the quantity or volume of the goods;
(e) the consideration for the supply; and
(f) proof and date of payment.