How to Create a Tax Invoice in South Africa

A tax invoice is a document issued by a VAT-registered vendor that allows your customer to claim VAT. Creating compliant invoices is essential for SARS compliance and professional business operations.

Quick Checklist: Tax Invoice Requirements

Your tax invoice must include:

Words "Tax Invoice" prominently displayed

Your business name and VAT number

Customer name and address

Unique invoice number

Date of issue

Description of goods/services

Quantity and unit price

VAT amount (15%)

Total amount including VAT

Step-by-Step: Creating Your Invoice

Step 1: Add Your Business Details

Include your:

Registered business name

Physical address

VAT registration number

Contact details (phone, email)

Step 2: Add Customer Information

Customer/client name

Physical or postal address

Their VAT number (if applicable)

Step 3: Invoice Details

Invoice number: Use sequential numbering (INV-001, INV-002)

Invoice date: The date you issue the invoice

Due date: When payment is expected (typically 7, 14, or 30 days)

Step 4: Itemize Products/Services

For each line item include:

Clear description

Quantity

Unit price (excluding VAT)

Line total

Step 5: Calculate Totals

Subtotal (before VAT)

VAT at 15%

Total due (including VAT)

Simplified Tax Invoice (Under R5,000)

For sales under R5,000, you can issue a simplified tax invoice with:

Words "Tax Invoice"

Supplier name, address, VAT number

Date

Description of goods/services

Total including VAT

Common Invoice Mistakes

Missing VAT number - Invalid for VAT claims

Wrong calculations - Always double-check VAT math

Vague descriptions - Be specific about what was sold

Duplicate numbers - Each invoice needs a unique number

Missing dates - Required for SARS records

Free Invoice Template

LEDGA provides free, SARS-compliant invoice templates that automatically:

Calculate VAT correctly

Generate unique invoice numbers

Include all required fields

Store invoices for 5+ years

Send professional PDFs to customers