Educational guide
How to Invoice in South Africa
What a South African tax invoice has to contain, when a full or abridged invoice applies and when VAT registration is compulsory, quoted from SARS with each page's date.
This page is for general education only. Tax law, e-invoicing rules, and invoice mandates vary by sector, threshold, and updates from authorities. Confirm requirements with a qualified accountant, lawyer, or government guidance for your situation.
In South Africa, VAT is administered by the South African Revenue Service (SARS). Its VAT page (last updated 08/09/2026) says "VAT is levied at the standard rate of 15% on the supply of goods and services by registered vendors." Its "Register for VAT" page (last updated 08/10/2026) says "It is compulsory for a person to register for VAT if the value of taxable supplies made or to be made, is in excess of R2.3 million in any consecutive 12 month period."
For vendors, start with the tax invoice. SARS's "Tax Invoices" page (last updated 11/03/2021) says "Without a proper tax invoice a business cannot deduct input tax on business expenses." It also says "A business is required to issue a full tax invoice when the price is more than R5 000 (referred to as consideration for the supply) and may issue an abridged tax invoice when the consideration for the supply is R 5 000 or less than R5 000." On timing, the same page refers to "21 days from the time the supply was made". For anything outside everyday sales, check SARS's guidance or ask a local tax practitioner.
Worked example, with sample figures in South African rand (ZAR): a VAT-registered consultant bills a VAT-registered company for 5 days at R1,500.00 a day, so R7,500.00 before VAT, assuming a standard-rated supply. At the rate SARS gives ("the standard rate of 15%"), VAT is R7,500.00 × 15% = R1,125.00, and the total is R8,625.00. That is more than the "R5 000" in SARS's rule, so a full tax invoice applies, with every detail on SARS's list, including "Name, address and where the recipient is a vendor, the recipient’s VAT registration number".
Billed's invoice software page says you can "Save your tax rates and settings once"; the same sentence ends "Billed calculates taxes automatically when you create invoices and estimates."
Invoice checklist for South Africa
Each item has a note on what to include and when it applies.
Heading that names the document
RequiredSARS's "Tax Invoices" page (South Africa, last updated 11/03/2021) lists "Contains the words 'Tax Invoice', 'VAT Invoice' or 'Invoice'" among the details that must be shown "As from 8 January 2016".
Supplier's name, address and VAT number
RequiredSARS (South Africa, last updated 11/03/2021): "Name, address and VAT registration number of the supplier".
Recipient's details
RequiredSARS (South Africa, last updated 11/03/2021): "Name, address and where the recipient is a vendor, the recipient’s VAT registration number".
Serial number and date
RequiredSARS (South Africa, last updated 11/03/2021): "Serial number and date of issue of invoice".
Description
RequiredSARS (South Africa, last updated 11/03/2021): "Accurate description of goods and /or services (indicating where applicable that the goods are second hand goods)".
Quantity or volume
RequiredSARS (South Africa, last updated 11/03/2021): "Quantity or volume of goods or services supplied".
Value, VAT and total
RequiredSARS (South Africa, last updated 11/03/2021): "Value of the supply, the amount of tax charged and the consideration of the supply (value and the tax)".
Tax and regulatory themes in South Africa
VAT rate
SARS's VAT page (South Africa, last updated 08/09/2026) says "VAT is levied at the standard rate of 15% on the supply of goods and services by registered vendors." It adds that "Certain supplies are subject to a zero rate, or are exempt from VAT."
Registering for VAT
SARS (South Africa, last updated 08/10/2026): "It is compulsory for a person to register for VAT if the value of taxable supplies made or to be made, is in excess of R2.3 million in any consecutive 12 month period." Also: "An application for a compulsory VAT registration must be made within 21 business days from the date the R2.3 million is or will be exceeded."
Full or abridged tax invoice
SARS (South Africa, last updated 11/03/2021): "A business is required to issue a full tax invoice when the price is more than R5 000 (referred to as consideration for the supply) and may issue an abridged tax invoice when the consideration for the supply is R 5 000 or less than R5 000." And: "If the consideration for the supply is R50 or less, a tax invoice is not required."
Payment methods in South Africa
Availability depends on banks, platforms, and contract terms.
- Bank transfer
- Card payment
Business and cultural tips for South Africa
- Issue the tax invoice promptly. SARS (South Africa, last updated 11/03/2021) says "The VAT Act also prescribes the timeframe within which a tax invoice must be issued (i.e. 21 days from the time the supply was made)."
- Say when goods are second-hand. SARS (South Africa, last updated 11/03/2021) asks for an "Accurate description of goods and /or services (indicating where applicable that the goods are second hand goods)".
- Check the threshold you are working from. SARS's VAT page (South Africa, last updated 08/09/2026) says "The compulsory registration threshold is increased from R1 million to R2.3 million." and "The effective date for the increase is 1 April 2026."
Questions about invoicing in South Africa
Invoicing guides for other countries
Prefer a product overview for this market? See Billed for South Africa.
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At a glance
| Situation | What SARS says (South Africa) |
|---|---|
| VAT rate | "VAT is levied at the standard rate of 15% on the supply of goods and services by registered vendors." (VAT page, last updated 08/09/2026) |
| Compulsory registration | "It is compulsory for a person to register for VAT if the value of taxable supplies made or to be made, is in excess of R2.3 million in any consecutive 12 month period." (Register for VAT, last updated 08/10/2026) |
| Larger sales | A full tax invoice is required "when the price is more than R5 000" (Tax Invoices, last updated 11/03/2021) |
| Smaller sales | An abridged tax invoice may be issued "when the consideration for the supply is R 5 000 or less than R5 000" (Tax Invoices, last updated 11/03/2021) |
| Very small sales | "If the consideration for the supply is R50 or less, a tax invoice is not required." (Tax Invoices, last updated 11/03/2021) |
When this isn't for you
Meant for South African VAT vendors billing everyday sales. Imports and exports, second-hand goods schemes, recipient-created tax invoices and non-resident electronic services have their own SARS rules; check SARS's guidance or ask a local tax practitioner.