What Is a VAT Invoice?
A VAT invoice (also called a tax invoice) is a document issued by a VAT-registered business that includes specific information required by the South African Revenue Service (SARS). It serves as proof of a taxable transaction and allows the recipient to claim input VAT.
In South Africa, businesses with annual turnover exceeding R1 million must register for VAT and issue tax invoices for all taxable supplies. The current VAT rate is 15%.
Illumi makes VAT invoicing simple. Enter your VAT number once, and every invoice you create will be a fully compliant tax invoice with all required fields and automatic VAT calculations.
VAT Invoicing Features
Everything you need for compliant VAT invoicing in South Africa.
SARS Compliant
Every invoice includes all fields required by SARS for valid tax invoices. Stay compliant without thinking about it.
Automatic VAT Calculation
Enter prices inclusive or exclusive of VAT — Illumi calculates the rest automatically at 15%.
Professional Templates
Clean, professional tax invoice templates that clearly display VAT amounts and your VAT registration number.
Business Details
Your company name, address, and VAT number are automatically included on every invoice.
Zero-Rated Support
Support for zero-rated and exempt supplies. Apply different VAT rates to different line items.
Tax Invoice Records
All invoices are stored securely for the required 5-year period. Export anytime for SARS submissions.
SARS Tax Invoice Requirements
SARS has specific requirements for what must appear on a tax invoice. Illumi includes all of them automatically — you don't have to think about compliance.
Professional VAT Invoice Template
Clean, professional tax invoices that meet all SARS requirements.
| Description | Qty | Unit Price | Amount |
|---|---|---|---|
| Website Development Services | 1 | R 15,000.00 | R 15,000.00 |
| Monthly Hosting (Annual) | 12 | R 250.00 | R 3,000.00 |
VAT Tips for SA Businesses
Quick tips to help you manage VAT effectively.
When to Register
You must register for VAT when your taxable turnover exceeds R1 million in any 12-month period. Voluntary registration is available from R50,000.
Input vs Output VAT
Output VAT is what you charge customers. Input VAT is what you pay on business purchases. You pay SARS the difference.
Keep Good Records
SARS requires 5 years of records. Illumi stores everything securely and lets you export anytime.
Submit on Time
VAT returns are due by the 25th of the month following the tax period. Late submissions incur penalties.
Frequently Asked Questions
What is a VAT invoice?
A VAT invoice (or tax invoice) is a document issued by a VAT-registered business that includes specific information required by SARS. It allows the recipient to claim input VAT on their purchases. In South Africa, businesses with turnover exceeding R1 million must register for VAT and issue tax invoices.
What must be included on a South African VAT invoice?
SARS requires tax invoices to include: the words 'Tax Invoice', seller's details (name, address, VAT number), buyer's details, invoice number, date, description of goods/services, quantity, price excluding VAT, VAT amount at 15%, and total including VAT. Illumi includes all of these automatically.
Does Illumi calculate VAT automatically?
Yes. You can enter prices inclusive or exclusive of VAT, and Illumi calculates the rest. The standard 15% rate is applied automatically, and you can also apply zero-rated or exempt status to specific line items.
Can I use Illumi if I'm not VAT registered?
Absolutely. If you're not VAT registered, simply don't add a VAT number to your profile. Your invoices will be standard invoices without VAT. When you register for VAT, just add your number and all future invoices will be tax invoices.
How long must I keep VAT invoices?
SARS requires you to keep tax invoices for 5 years. Illumi stores all your invoices securely in the cloud, so you'll always have access to your records. You can export invoices anytime for audits or submissions.
What's the VAT registration threshold in South Africa?
Businesses must register for VAT when taxable turnover exceeds R1 million in any 12-month period. Voluntary registration is possible for businesses with turnover between R50,000 and R1 million.