South African tax invoices and VAT registration: the 2026 SARS guide
If you are a VAT-registered business in South Africa, the invoices you issue must meet specific requirements set out in Section 20 of the VAT Act. A document that is missing even one required field can be rejected by SARS and prevent your customer from claiming the input VAT. This guide explains when you have to register for VAT at all, what a valid tax invoice must contain, the difference between a full and an abridged tax invoice, and what to send if you are not a VAT vendor — then you can create a compliant document for free in a couple of minutes.
Updated August 2026 to cover the new R2.3 million registration threshold.
What is a tax invoice?
A tax invoice is the document a VAT-registered vendor must issue when making a taxable supply. It is the legal record that VAT was charged, and it is what allows the buyer (if they are also a registered vendor) to claim that VAT back as an input tax deduction. It is different from a quote, a proforma, or an ordinary sales receipt.
The current VAT rate in South Africa
The standard VAT rate in South Africa is 15%. This is the rate applied to most goods and services supplied by registered vendors. Some supplies are zero-rated (0%) or exempt, but for the majority of businesses the rate you charge and show on your invoice is 15%.
Do you have to register for VAT?
Only a registered VAT vendor may charge VAT or issue a tax invoice, so the first question is whether you have to register at all. There are two routes.
Compulsory registration — R2.3 million
You must register when the value of your taxable supplies in any consecutive 12-month period has exceeded, or is likely to exceed, R2.3 million. You have 21 business days from the date the threshold is or will be exceeded to apply. Registration is also compulsory where a written contract commits you to making taxable supplies of more than R2.3 million in a 12-month period.
Note that this is a rolling 12 months, not your financial year — the test can be triggered part-way through a year by a single large contract.
Voluntary registration — R120 000
Below the compulsory threshold you may choose to register if your taxable supplies exceeded R120 000 in the past 12 months. Businesses that mostly sell to other VAT vendors sometimes register voluntarily so they can claim input tax on their own purchases.
What changed in April 2026
From 1 April 2026 the compulsory threshold rose from R1 million to R2.3 million — the first change in 17 years — and the voluntary threshold rose from R50 000 to R120 000. A great many small businesses that were previously obliged to register now fall below the line.
If you registered under the old R1 million threshold you are not deregistered automatically, and staying registered is not necessarily the wrong choice: it depends on whether the input tax you reclaim outweighs the administration. That is a conversation worth having with your accountant rather than a decision to rush.
If you are not registered for VAT
If you are below the threshold and have not registered, you are not a VAT vendor — and that has direct consequences for the documents you send:
- Do not head your document "Tax Invoice". Call it an Invoice.
- Do not charge VAT or show a VAT amount, and do not show a VAT registration number.
- Your client cannot claim input tax on what you invoice, because no VAT was charged.
Charging VAT, or presenting a document as though VAT were included, when you are not registered is a serious matter — not a formatting preference. Our invoice generator has a switch for exactly this: turn off "My business is registered for VAT" and you get a plain invoice with no VAT numbers, no tax column and no tax total.
Full, abridged, or none: the three tiers
SARS uses a three-tier system based on the VAT-inclusive value of each transaction:
- Above R5,000 — a full tax invoice is required, showing both the supplier's and the recipient's details.
- R50 to R5,000 — an abridged tax invoice is allowed, which may leave out the recipient's name, address and VAT number.
- Below R50 — no formal tax invoice is required, though a till slip or sales docket showing the VAT is still needed if the buyer wants to claim input tax.
Full tax invoice checklist
For any supply over R5,000 (VAT inclusive), the invoice must contain all of the following:
- The words "Tax Invoice", "VAT Invoice" or "Invoice".
- The supplier's name, address and VAT registration number.
- The recipient's name, address and (if they are a vendor) VAT registration number.
- A unique serial / invoice number.
- The date the invoice was issued.
- An accurate description of the goods or services.
- The quantity or volume supplied.
- The value of the supply, the VAT amount charged, and the total — or the total with a statement that it includes VAT at 15%.
Abridged tax invoice
For supplies between R50 and R5,000, an abridged tax invoice is acceptable. It still needs the words "Tax Invoice", the supplier's details, an invoice number and date, a description of what was supplied, and the VAT amount or a statement that VAT is included — but the recipient's name, address and VAT number can be left off.
Common mistakes that invalidate an invoice
- Leaving off the words "Tax Invoice".
- Missing or incorrect VAT registration numbers.
- Reusing or skipping invoice numbers instead of a unique sequence.
- Not showing the VAT amount separately (or not stating that the total includes VAT).
- Vague descriptions that don't identify what was actually supplied.
Create a compliant tax invoice for free
Our free online invoice generator is laid out with all of these required fields — supplier and recipient details, VAT numbers, invoice number and date, line items with quantity and price, and automatic 15% VAT calculation. Fill it in, download a professional PDF, and send it to your client.
Frequently asked questions
What is the VAT rate in South Africa?
The standard VAT rate is 15%.
What is the VAT registration threshold in South Africa?
Registration is compulsory once taxable supplies in any consecutive 12-month period exceed, or are likely to exceed, R2.3 million. Voluntary registration is available from R120 000. Both thresholds rose on 1 April 2026, from R1 million and R50 000 respectively.
Can I issue an invoice if I am not registered for VAT?
Yes — but it is an "Invoice", not a "Tax Invoice", and it must not charge VAT, show a VAT amount or carry a VAT registration number.
When do I need a full tax invoice?
When the VAT-inclusive value of the supply is more than R5,000. Below that, down to R50, an abridged tax invoice is allowed.
What must appear on a valid tax invoice?
The words "Tax Invoice", supplier and recipient details including VAT numbers, a unique invoice number, the date, a description and quantity of what was supplied, and the value plus the VAT charged.