Section 20 (VAT) – Tax invoices

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”.

[Subsection (1) amended by section 91 of Act 53 of 1999 and section 104 of Act 32 of 2004]

(1A) ……….

[Subsection (1A) inserted by section 157 of Act 60 of 2001 and deleted by section 104 of Act 32 of 2004]

(1B) Where a tax invoice contains an error in the particulars listed in subsection (4) or (5) and the circumstances contemplated in section 21(1)(a) to (e) of this Act are not applicable, the supplier must—

(i) correct that tax invoice with the correct particulars, within 21 days from the date of the request to correct it: Provided that the time of supply contemplated in section 9 of this Act remains unaltered; and

(ii) obtain and retain information sufficient to identify the transaction to which that tax invoice and the corrected tax invoice

[Subsection (1B) inserted by section 7 of Act 22 of 2018]

(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) substituted by section 26 of Act 23 of 2015 effective on 8 January 2016]

(b)     the name, address and VAT registration number of the supplier;

[Paragraph (b) substituted by section 47 of Act 16 of 2004]

(c)     the name, address and where the recipient is a registered vendor, the VAT registration number of the recipient.

[Paragraph (c) substituted by section 175 of Act 45 of 2003 and section 47 of Act 16 of 2004]

(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;

[Paragraph (e) substituted by section 157 of Act 60 of 2001 and section 104 of Act 32 of 2004]

(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:

[Paragraph (g) substituted by GN 2695 of 1991 and section 25 of Act 136 of 1992]

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.

[Subsection (4) amended by section 94 of Act 30 of 1998 and section 157 of Act 60 of 2001]

(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:

[Words preceding paragraph (a) substituted by section 29 of Act 21 of 2012 effective on 20 December 2012]

(a)     The words “tax invoice”, “VAT invoice” or “invoice”;

[Paragraph (a) substituted by section 26 of Act 23 of 2015 effective on 8 January 2016]

(b)     the name, address and VAT registration number of the supplier;

[Paragraph (b) substituted by section 47 of Act 16 of 2004]

(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;

[Paragraph (d) substituted by section 104 of Act 32 of 2004]

(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:

[Paragraph (e) substituted by GN 2695 of 1991 and section 25 of Act 136 of 1992]

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

[Subsection (5) amended by section 33 of Act 97 of 1993, section 94 of Act 30 of 1998, section 157 of Act 60 of 2001, section 104 of Act 32 of 2004 and section 14 of Act 9 of 2007]

(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.

[Subsection (5A) inserted by section 35 of Act 18 of 2009]

(5B)   Notwithstanding any other provision of this Act, if the supply by a vendor relates to any enterprise contemplated in paragraphs (b)(vi) and (b)(vii) 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 Commissioner by notice in the Gazette.

[Subsection (5B) inserted by section 176(1)(a) of Act 31 of 2013 and substituted by section 99(1) of Act 43 of 2014 and by section 19 of Act 33 of 2019]

(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.

[Subsection (6) amended by section 157 of Act 60 of 2001 and substituted by section 30 of Act 8 of 2010 effective on 2 November 2010]

(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.

[Paragraph (c) added by section 91 of Act 53 of 1999]

(8)     Notwithstanding anything in this section, where a supplier makes a supply (not being a taxable supply) of second-hand goods 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 card, as contemplated in section 1 of the Identification Act, 1997 (Act 68 of 1997), and retain a photocopy of such name and identity number appearing in such identity card; or

[Paragraph (A) substituted by section 20 of Act 24 of 2020]

(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;

[Paragraph (b) substituted by section 176(1)(b) of Act 31 of 2013 and by section 31(1)(b) of Act 20 of 2022 effective on 1 January, 2023]

(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.

[Subsection (8) amended by section 35 of Act 27 of 1997, by section 94(e) of Act 30 of 1998, by section 91(c) of Act 53 of 1999, by section 104(1)(f) of Act 32 of 2004 and by section 38 of Act 21 of 2006, substituted by section 30(b) of Act 8 of 2010 and amended by section 31(1)(a) of Act 20 of 2022 effective on 1 January, 2023]

(8A)   Notwithstanding anything in this section, where a supplier makes a deemed supply (not being a taxable supply) of goods contemplated in section 8(10) to a recipient, being a registered vendor, the recipient shall maintain sufficient records to enable the following particulars to be ascertained:

(a)     The date upon which the goods were repossessed or surrendered, as the case may be;

(b)     particulars referred to in paragraphs (a), (c), (d) and (e) of subsection (8); and

(c)     further particulars in the form and manner as the Commissioner may prescribe.

[Subsection (8A) added by section 31(1)(c) of Act 20 of 2022 effective on 1 January, 2023]