Page 439 - Juta's Indirect Tax

IN 56 (2) VaLue-added tax act: InterPretatIOn nOtes IN 56 (2)
Full tax invoice
A tax invoice must contain the following particulars where the consideration for the supply exceeds R5 000 before it will constitute a valid tax invoice (referred to as a ‘full tax invoice’):
• The words ‘tax invoice’ displayed in a prominent place.
• The name, address and VAT registration number of the supplier.
• The name, address and VAT registration number of the recipient.
• An individual serialised number and the date on which the tax invoice is issued.
• A full and proper description of the goods (indicating, where applicable, that the goods are second-hand goods) or
services supplied.
• The quantity or volume of the goods or services supplied. • Either –
– the value of the supply, the total amount of tax charged and the consideration including tax charged for the supply; or
– the consideration including tax charged for the supply and either the amount of tax charged or a statement to the effect that it includes a charge for the tax and the rate at which the tax was charged.
The value and consideration must be denominated in Rands (except in relation to a zero-rated supply). The consideration and the VAT charged must be re ected on the tax invoice in one of the following approved formats:
Method 1 – All individual amounts re ected
Price (excl. VAT)
R500
VAT @ 14%
R70
Total including VAT
R570
Method 2 – Total consideration and the rate of VAT charged
Total consideration
R570
VAT included @ 14%
R70
Method 3 – Total consideration and the amount of VAT charged
Total consideration
R570
VAT included
R70
Annexure E – Example of an agreement that a recipient and a supplier must enter into in order to satisfy the requirements of the BGR 15
The following is an example of an agreement that a recipient and a supplier must enter into in order to satisfy the requirements of BGR 15 (refer to 5.4 of this Note).
RECIPIENT-CREATED TAX INVOICE, CREDIT AND DEBIT NOTE AGREEMENT
This document constitutes an agreement between Recipient’s Legal Name & Trading Name Recipient’s VAT No:
and
Supplier’s Legal Name & Trading Name:
Supplier’s VAT No:
1. The recipient and the supplier hereby enter into an agreement in terms of which the supplier grants permission to
the recipient to issue tax invoices, credit and debit notes for supplies made by the supplier to the recipient.
2. The recipient and supplier hereby declare that they are registered vendors in terms of the Value-Added Tax Act,
No. 89 of 1991.
3. The recipient and the supplier acknowledge that sections 20(2) and 21(4) of the Value-Added Tax Act, No. 89
of 1991 make provision for the recipient to issue tax invoices, credit and debit notes for supplies made by the
supplier to the recipient.
4. The recipient and the supplier further acknowledge that the Commissioner for the South African Revenue Service
has issued guidelines regarding the requirements that must be satis ed before a recipient can issue tax invoices, credit and debit notes for supplies made by the supplier to the recipient and acknowledge that the supplies concerned comply with BGR (VAT) No. 15 (Issue 2).
5. The recipient hereby undertakes to –
5.1 issue recipient-created tax invoices, credit and debit notes in compliance with the provisions of sections
20(4), (5), 21(1) or 21(3) of the Value-Added Tax Act, No. 89 of 1991, respectively;
Juta’s IndIrect tax 2016 431