Whether you're a VAT-registered vendor or a small freelancer in South Africa, your invoices need to meet SARS requirements. Here's exactly what to include β plus a free invoice generator.
π TL;DR
VAT-registered in SA? Your invoices need to say βTax Invoiceβ, include your VAT number, show VAT at 15%, and separate the VAT amount. Not registered? Standard invoice without VAT fields. Use our free invoice generator to create SARS-compliant invoices instantly.
SARS (South African Revenue Service) has specific requirements for invoices issued by VAT vendors. If you are VAT-registered, your invoices must qualify as valid βtax invoicesβ β otherwise your clients cannot claim the input VAT, which creates problems for them and potentially for you.
| Field | Notes |
|---|---|
| Words βTax Invoiceβ | Must appear prominently on the document |
| Your VAT registration number | Format: 4xxxxxxxx (10 digits) |
| Recipient VAT number (B2B) | Required for invoices over R5,000 between VAT vendors |
| Invoice date | Date of supply |
| Unique invoice number | Sequential numbering required |
| Supplier name & address | Your trading name and physical/postal address |
| Recipient name & address | Your client's details |
| Description of supply | Clear description of goods/services delivered |
| Quantity and unit price | Before VAT |
| VAT rate (15%) | SA standard VAT rate as of 2026 |
| VAT amount in rands (R) | Shown separately |
| Total including VAT | Final payable amount |
| Type | Who issues it | VAT shown? |
|---|---|---|
| Full Tax Invoice | VAT-registered vendor, invoices over R5,000 | β All VAT fields required |
| Abridged Tax Invoice | VAT-registered vendor, invoices R50βR5,000 | β οΈ Simplified VAT fields |
| Regular Invoice | Non-VAT-registered freelancers/businesses | β No VAT fields |
VAT registration is compulsory once your turnover exceeds R1 million in any 12-month period. Voluntary registration is allowed from R50,000.
The current SA VAT rate is 15% (unchanged since 2018). Once registered, you:
Use Chaser's free invoice generator to create SARS-compliant invoices instantly. Set your VAT rate to 15%, add your VAT registration number in the business details, and download a professional PDF.
Create a free SA invoice with your VAT number, 15% VAT calculation, and professional PDF β in 2 minutes.
Create free SA invoice βStandard B2B payment terms in South Africa:
Primary payment method: EFT (Electronic Funds Transfer) via South African banking system. Online options include PayFast, Peach Payments, and Yoco.
Late payment:Include an interest clause on your invoices. Interest on late payments is legally permissible and enforceable in SA courts. Chaser's automated reminders significantly reduce late payment rates.
Build professional SA invoices with 15% VAT and let Chaser chase late payments automatically. Free for up to 3 invoices.
Start free βFree forever Β· No credit card Β· Setup in 2 minutes
A SARS-compliant tax invoice must include: the words 'Tax Invoice', your VAT registration number, the VAT registration number of the recipient (for B2B), invoice date and unique invoice number, your name and address, recipient name and address, description of goods/services, quantity, unit price, VAT rate (15%), VAT amount in rands, and total amount including VAT.
VAT registration is compulsory when your taxable turnover exceeds R1 million in any consecutive 12-month period. Voluntary registration is possible from R50,000. Once registered, you must charge 15% VAT, file monthly or bi-monthly VAT returns (VAT201), and remit the collected VAT to SARS.
A tax invoice is required for all supplies made by VAT-registered vendors. For invoices over R5,000, a full tax invoice is required (all VAT fields). For invoices R50βR5,000, an abridged tax invoice (simplified fields) is acceptable. Non-VAT-registered businesses issue regular invoices without VAT fields.
EFT (Electronic Funds Transfer) is the primary B2B payment method in South Africa β equivalent to bank transfer in Europe. PayFast and Peach Payments are popular online payment gateways. Cash is still used for small transactions. Cheques are largely obsolete. Standard B2B payment terms are Net 30 (30 days from invoice date).
Yes. The Prescribed Rate of Interest Act and the National Credit Act allow you to charge interest on overdue amounts. The legal prescribed interest rate is updated periodically β check the current rate at justice.gov.za. Include your late payment interest clause in your invoice terms: 'Interest at the prescribed rate will accrue on overdue amounts.'