Must I re-issue a tax invoice to a customer if one digit in the VAT number is incorrect?
12 May 2015
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: If a digit of
the VAT number is incorrectly typed on all a company's customer invoices, is it
necessary to re-issue the customers new invoices?
A: The Act
doesn’t deal with this and SARS has also not provided any information that can
assist in this regard. Section 20 of the
Value-Added Tax Act requires that the VAT registration number of the supplier
must appear on the tax invoice and this of course assumes that it is the
correct one. The Act then doesn’t allow
for an invoice to be amended because of an error in this number of any other
detail, such as address or name, etc.
We submit that it should be treated as an incorrect invoice
that was issued and a replacement one be issued. We however suggest that the matter be taken
up with SARS and a ruling obtained from them on how to deal with this.
Potentially it could present a problem to a recipient if
they deduct input tax and SARS audits the supporting documents. A wrong VAT registration number will in all
probability be seen by them as not a valid tax invoice and they actually test
this from time to time.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.