25. SARS VAT Vendors Guide.pdf

139 if the consideration in money for the supply is

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139 If the consideration in money for the supply is R50 or less, a tax invoice is not required. However, a document such as a till slip or sales docket indicating the VAT charged by the supplier will be required to confirm the output tax declared and verify the input tax deducted. A tax invoice must be in South African currency, except for a zero-rated supply (for example, goods exported) or in the case of certain supplies of electronic services by non-resident suppliers. 140 A full tax invoice (see the example on the previous page) must be issued in respect of zero-rated supplies, even if the consideration is less than R5 000. A full tax invoice must indicate the recipient’s VAT registration number (if that person is a vendor). A BGR has been published to set out, amongst others the information to be contained on a tax invoice, debit or credit note to be issued by electronic service suppliers. See BGR 28 for more information. The acceptable documentary proof relating to tax invoices is set out in a BGR. See 8.1 . 13.4 Documents prepared by the recipient (self-invoicing) 13.4.1 Tax Invoices, credit notes and debit notes In some instances the consideration for a supply is determined by the recipient of the goods/services rather than by the supplier. An example of this is where a farmer (the supplier) takes produce to a co-operative which will only be sold at a later stage, once the quality and quantity of the produce has been determined. Since the price that will eventually be obtained for the goods depends on factors outside the farmer’s control, the farmer is not in a position to issue an invoice or tax invoice for the produce when it is delivered for sale. In such cases, SARS may permit the co-operative (recipient) to issue the tax invoices and any debit and credit notes relating to supplies instead of the supplier. This is referred to as “recipient-created invoicing” or “self-invoicing”. 13.4.2 Binding General Ruling 15 Paragraph 5 of Interpretation Note 56 “Recipient-Created Tax Invoices; Credit and Debit Notes” contains a BGR which was reproduced in BGR 15. BGR 15 essentially grants approval to recipient vendors to apply self-invoicing where the recipient determines the consideration for the supply of the goods or services and is in control of determining the quantity or quality of the supply, or is responsible for measuring or testing the goods sold by the supplier. BGR 15 provides that in such cases, the recipient may issue any tax invoices, credit and debit notes for the supplies concerned instead of the supplier. This is on condition that the parties to the transaction comply with the requirements set out in Interpretation Note 56 or BGR 15. Vendors that want to apply self-invoicing procedures, but are unable to comply with the requirements stipulated in Interpretation Note 56 or BGR 15 will have to 139 Section 54, as amended with effect from 1 April 2015.
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