Print Page   |   Report Abuse
News & Press: TaxTalk Business

What's the difference between full and abridged tax invoices?

25 June 2014   (0 Comments)
Posted by: Author: Simangele Mzizi
Share |

Author: Simangele Mzizi (FSP Business)

There's a lot of confusion regarding tax invoices. For example, some VAT vendors don't know the difference between full and abridged tax invoices. 

As a result, they get harsh SARS penalties. What's more... They lose out on input tax claims.

Don't take that risk. There's a big difference between full and abridged tax invoices.

You must issue a full tax invoice for supplies in excess of R5000. If the consideration for the supply is less than R5 000, you can get away with issuing an abridged tax invoice.

Take a look at the differences below.

This useful checklist gives a simple breakdown of the differences between the two types on invoice.

Full tax invoice: Issued for consideration of R5 000 or more

  1. The words 'tax invoice' must be in a prominent place.
  2. It must have the name, address and VAT registration number of the supplier.
  3. It must have the name, address and VAT registration number of the recipient.
  4. Serial number and date of issue.
  5. Have an accurate description of goods or service.
  6. Quantity or mass (weight) of goods or services supplied.
  7. Have the price and VAT.

Now take a look at an abridged tax invoice issued for consideration of less than R5 000.

  1.  The words 'tax invoice' must be in a prominent place.
  2. It must have the name, address and VAT registration number of the supplier.
  3. It doesn’t have to have the name, address and VAT registration number of the recipient.
  4. It must have a serial number and date of issue.
  5. It must have a description of the goods.
  6. It doesn’t reflect the quantity or mass (weight) of goods or services supplied.
  7. It has the price and VAT.

Now that you know the differences, we have a word of advice when it comes to tax  invoices.

It's a good idea to always issue full tax invoices.

It is recommend you adopt this practice as a working policy so you never make unintentional errors and fail to issue valid tax invoices for each and every transaction.



WHY REGISTER WITH SAIT?

Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

MINIMUM REQUIREMENTS TO REGISTER

The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

Membership Management Software Powered by YourMembership  ::  Legal