What South African law says must be on your invoice

What should an invoice contain

Invoicing is an important part of running a business. It helps you get paid for your work and keep a record of how much you’ve sold. But it can be scary for some people. I've had customers ask me what an invoice must have on it. This email should teach you a little about invoicing.

 

Understanding the Basics of Invoicing

Before we dive into the nitty-gritty of making an invoice, let's be sure what an invoice actually is. It’s a document that shows what you have sold to someone else. It asks your customer to pay you and shows them what they are paying for.

 

Importance of Invoicing in Business

Proper invoicing is important for the financial health of your business. It helps you keep track of your income, but it also ensures that you receive quick payments from your customers. I’ve also said many times that a professional invoice can help maintain a professional image and build trust with your clients. In fact you are probably tired of me saying that...but it’s so important that I will carry on.

 

South African law says there are certain things a tax invoice must have on it:

  • The words ‘Tax invoice’, ‘VAT invoice’, or ‘Invoice’. Any of these words is fine.
  • Name, address and VAT registration of your business
  • Name and address of your customer. If your customer is registered for VAT the invoice should have their VAT number.
  • An invoice number and date.
  • A good description of what you are selling. If the goods are second hand you must write that.
  • How many of the goods or services you sold
  • The amount, the tax and the total.

 

But if your invoice is under R5 000 it only needs

  • The words ‘Tax invoice’, ‘VAT invoice’, or ‘Invoice’. Any of these words is fine.
  • Name, address and VAT registration of your business.
  • An invoice number and date.
  • A good description of what you are selling.
  • The amount, the tax and the total.

 

If the amount is R50 or less you don’t need an invoice.

 

Invoice SA’s invoices have everything the law says they must have. We also include your bank details and give you space to write notes for your customer. So you can feel good that your invoices are legal and professional at the same time.