This ruling now clarifies that the address of the recipient and supplier to be reflected on a tax invoice, debit or credit note is either
- The physical address from where the enterprise is being conducted;
- The postal address of the enterprise; or
- Both the physical and postal addresses of the enterprise.
With regard to branches or divisions that are separately registered for VAT in terms of section 50(1) of the VAT Act, the tax invoice, credit or debit note must reflect the address of the branch or division as listed above.
A tax invoice, credit or debit note issued for a zero-rated supply of goods or services to a non-resident must reflect either:
- The physical address of the non-resident in the foreign country;
- The postal address of the non-resident; or
- Both the physical and the postal address of the non-resident.
The address of the supplier must always be reflected on tax invoices as well as on debit and credit notes issued by VAT vendors. The address of the recipient must also be reflected on a tax invoice, debit or credit note where the consideration for the underlying supply exceeds or, in the case of a debit or credit note, exceeded R5 000. This ruling sets out which addresses (of the supplier or the recipient) are to be reflected for these purposes.
The ruling implies that the address of the recipient need only be reflected where the recipient is a vendor or a non-resident. In terms of section 20(4) of the VAT Act, the address must also be reflected where the recipient is a resident but a non-vendor, provided that the consideration for the supply exceeds R5 000. The particulars required to be contained in tax invoices in terms of section 20(4) are however subject to ‘what the Commissioner may otherwise allow’. It is unfortunately not clear whether, to this extent there is an error in the ruling or if the ruling may be construed as a departure from the requirements as laid out in the section.
For ease of reference, the information that must be contained on a tax invoice where the consideration for the supply exceeds R5 000 is:
- The words ‘tax invoice’ in a prominent place;
- The name, address (as above) and VAT registration number of the supplier;
- The name, address (as above) and, where the recipient is a registered vendor, the VAT registration number of the recipient;
- An individual serialized number and the date upon which the tax invoice was issued;
- 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; and
- Either:
- The value of the supply, the amount of VAT and the consideration (exclusive basis); or
- The consideration for the supply and either the amount of VAT or a statement that it includes VAT and the rate at which the VAT was charged (inclusive basis).
In the case of zero-rated supplies, the tax invoices do not have to be in Rands.
The information that must be contained in a credit or debit note where the consideration for the underlying supply exceeded R5 000 is:
- The words ‘credit note’ or ‘debit note’ in a prominent place;
- The name, address (as above) and VAT registration number of the supplier;
- The name, address (as above) and, where the recipient is a registered vendor, the VAT registration number of the recipient;
- The date upon which the credit or debit note was issued;
- Full and proper description of the goods (indicating, where applicable, that the goods are second-hand goods) or services supplied;
- Either:
- The amount by which the value of the supply on the tax invoice has been reduced or increased and the amount of the excess or additional VAT (exclusive basis); or
- the amount by which the consideration for the supply has been reduced or increased and either the amount of the excess or additional VAT or a statement that the reduction or increase includes VAT and the rate (inclusive basis);
- A brief explanation of the circumstances giving rise to the issuing of the credit or debit note; and
- Information sufficient to identify the transaction to which the credit or debit note relates.
The ruling is valid from 11 March 2014 and it applies for an indefinite period.