South Africa VAT invoicing rules: rates, registration and tax invoices

VAT rate and registration

The standard VAT rate is 15 percent, according to SARS. SARS also says that a limited range of goods and services is zero-rated or exempt, so check the rate for each product before you configure it.

From 1 April 2026, the compulsory registration threshold rose from R1 million to R2.3 million of taxable supplies. The voluntary registration threshold rose from R50,000 to R120,000. SARS states both changes on its VAT page.

What a tax invoice must show

SARS says the following details must appear on a tax invoice for it to be valid:

• A label that says "Tax Invoice", "VAT Invoice" or "Invoice"
• The supplier's name, address and VAT registration number
• The recipient's name and address, and the recipient's VAT registration number if the recipient is a vendor
• A serial number and the date of issue
• An accurate description of the goods or services, showing where goods are second-hand
• The quantity or volume supplied
• The value of the supply, the tax charged, and the consideration

Full, abridged or no invoice

A full tax invoice is required when the price is more than R5,000. An abridged invoice may be issued when the consideration is R5,000 or less. If the consideration is R50 or less, no tax invoice is required. For these purchases, a till slip or sales docket showing the VAT charged is needed to support an input tax claim.

When to issue

SARS says the VAT Act sets the deadline at 21 days from the time the supply was made.

Record retention

SARS states that a vendor must keep its records for five years. These include tax invoices for supplies made, bills of entry for imports and exports, and the general accounting records and documents that support the VAT return.

Next step

Read the developer documentation to map these fields into your invoice model.