When does my company need to issue a VAT invoice?

Colin Wolfsohn

14 April 2010

MoneywebTax looks at when and why a company needs VAT invoices.

Dear MoneywebTax

Our company deals so now and then with companies who claim that they do not need to issue tax invoices, all we get is statements. I read that you need to be registered for VAT if your turnover is less than 1million rand, I believe that till march 2009 it was 300.000 rand is this correct?

Does this means that companies with a turnover > 300.000 and registered before march 2009 must still have a vat number, and therefore issue tax invoices.

Your feedback is appreciated.

Answer from Saica's Colin Wolfsohn
A company that is VAT registered MUST issue a tax invoice if the sale is for more than R50 when it makes a sale or provides a service IF THE SALE IS FOR OVER R3 000 THE TAX INVOICE NEEDS TO HAVE THE CUSTOMER'S VAT NUMBER

The limit for CAT registrations changed to R1m (from R300 000) with effect from March 1 2009 This means that if an enterprise's turnover exceeds or is expected to exceed R1m in any 12 month period, it is obliged to register for VAT

If a company's turnover is over R300 000 but less than R1m and is VAT registered, it is able to de-register for VAT In such a case, it remains VAT registered until it is deregistered and must continue issuing tax invoices while still VAT registered

In order to claim the VAT back as an input tax, the customer is obliged to have a valid tax invoice otherwise Sars will not allow this claim.