Note a change in requirement when issuing a VAT invoice
30 April 2014
Posted by: Author: David Warneke
Author: David Warneke
SARS recently issued a binding general ruling
clarifying the requirement that the address of the recipient and supplier be
reflected on a tax invoice, debit or credit note. The
ruling is effective rom 11 March 2014 and it applies for an indefinite period.
In terms of the ruling, a businesses may elect to
- The physical address from where the
enterprise is being conducted;
- The postal address of the enterprise;
- Both the physical and postal addresses
of the enterprise.
Will branches and divisions be exempt
from this requirement?
Branches or divisions that are
separately registered for VAT¹, the tax invoice, credit or debit note must
reflect the address of the branch or division.
Will the same rule apply to the non-resident
A tax invoice, credit or debit note
issued for a zero-rated supply of goods or services to a non-resident must
- The physical address of the
non-resident in the foreign country;
- The postal address of the non-resident;
- Both the physical and the postal
address of the non-resident.
The address of the supplier must always
be reflected on tax invoices as well as on debit and credit notes issued by VAT
vendors. The address of the recipient must also be reflected in a tax invoice,
debit or credit note where the consideration for the underlying supply exceeds
or, in the case of a debit or credit note, exceeded R5 000. This ruling sets
out which addresses (of the supplier or the recipient) are relevant for these
The ruling implies that the address of
the recipient need only be reflected where the recipient is a vendor or a
non-resident. The address must also be reflected where the recipient is a
resident but a non-vendor, provided that the consideration for the supply
exceeds R5 000.²
The particulars required to be
contained in tax invoices are however subject to ‘what the Commissioner may
In terms of section 50(1) of the VAT Act.
In terms of section 20(4) of the VAT Act.