VAT Invoice Requirements in South Africa — 2026 Guide

What changed in 2026: the registration thresholds

In the Budget Speech of 25 February 2026, the Minister of Finance announced an increase in the VAT registration thresholds, effective 1 April 2026. SARS summarises the change on its VAT pages, and it affects every small business whose turnover sits in the gap between the old and new figures.

In plain terms: a business whose taxable supplies previously crossed R1 million had to register for VAT. From 1 April 2026 that obligation begins at R2.3 million instead — while a smaller business may apply to register voluntarily once taxable supplies exceed R120,000, subject to SARS's rules for voluntary registration.

Do you need to charge VAT on this invoice?

• You are a registered vendor: you charge VAT on your taxable supplies at the standard rate — 15% — and show it as its own line on the invoice.
• The supply is zero-rated or exempt: certain supplies are taxed at 0% or fall outside VAT entirely; SARS describes these as a limited category. Do not charge 15% on them without checking your position.
• You are not registered: you do not charge VAT, and you should not describe the document as a tax invoice.
• You are considering voluntary registration: the lower R120,000 threshold makes this possible for more small businesses, but registration brings obligations — returns, records, and administration — so treat it as a business decision, not a label.

One rate question that keeps resurfacing: the standard rate remains 15%. The increases proposed in the 2025 Budget (15.5%, then 16%) were reversed before taking effect, and SARS's VAT pages describe the standard rate as 15%. If an old template or habit has a different number in it, fix it.

What a South African tax invoice must show

SARS lists the information a tax invoice must contain so that your client can verify the VAT and, where they are a vendor themselves, deduct it as input tax. The core requirements:

• The supplier's name, address and VAT registration number.
• The recipient's name, address, and their VAT registration number where applicable.
• A serialised invoice number and the date of issue.
• A description of the goods or services supplied.
• The quantity or volume supplied.
• The value of the supply, the amount of VAT, and the total consideration.

SARS's guidance also expects the document to be identifiable as a tax invoice — this is why the heading matters, and why calling an ordinary invoice a "tax invoice" when you are not registered is a bad habit. For smaller supplies, SARS's vendor guide describes an abridged tax invoice with fewer particulars; the current VAT 404 Guide for Vendors sets out exactly when each form applies, and it is worth bookmarking if you invoice for a living.

Worked example: a compliant consultant tax invoice

A consulting business, registered for VAT, finishes a project for a client in October 2026. Here is the money side of the document:

Now the surrounding fields, which are what make the document usable: the supplier's name, address and VAT number in the header; the recipient's registered name, address and VAT number in the billing block; a serial number such as VC-2026-014; an issue date of 12 October 2026; Net 30 terms, which put the due date at 11 November 2026; the description and quantity above; and the subtotal, VAT and total lines. Bank details and a reference close the loop.

Every one of those fields exists for a reason: the recipient's VAT number lets their accounting system attach the input tax claim; the serial number and date anchor the document in both businesses' records; and the arithmetic — R800 times 30 hours, plus 15% — is legible without a phone call.

Five mistakes that turn a tax invoice into a problem

1. The supplier VAT number is missing. A VAT-registered client cannot use the invoice for input tax, so it comes straight back to you.
2. Numbers repeat or skip. A serial number is supposed to serialise; duplicates and gaps undermine exactly the trail an audit looks for.
3. VAT is charged by a business that is not registered. You cannot account for VAT you are not registered to collect, and your client cannot claim it. It is never a harmless extra line.
4. An outdated rate sits in the template. The rate is 15%. The 2025 proposals never took effect, and a template that still carries 15.5% or 16% will generate wrong documents silently.
5. Records are not kept. In South Africa a vendor must retain records — including tax invoices — for five years. When SARS asks, "the client has a copy" is not an answer.

How FreeInvoices handles VAT

The editor is built around the same fields the checklist above describes, so the mechanics do not get in the way of the rules:

• Set your standard VAT rate once in Settings; every new document starts from it.
• Choose per document whether you charge VAT, are exempt, or charge none — an exempt supply should not carry a 15% line by accident.
• The VAT amount and running total are computed as you type, and the VAT shows as its own line on the A4 sheet.
• Business details (with your VAT number), client records with their VAT numbers, serial numbers per document type and issue/due dates all have dedicated fields.
• When the document is right, the editor produces a clean A4 PDF you can email — see the guide for the full workflow.

Frequently asked questions