If you issue invoices in South Africa, understanding tax on my invoice is essential. Knowing when to charge VAT, what details the invoice must include, and how to remain compliant can protect your business, avoid penalties, and help you appear professional to clients. Using ProInvoice ensures your invoices meet legal requirements, clearly display tax, and help you manage the financial side responsibly.
Stay organized as you grow. Use ProInvoice to manage billing and client relationships with ease.
What Kinds of Tax Might Be on an Invoice?
In South Africa, the main tax that appears on invoices is Value-Added Tax (VAT).
- VAT is charged at 15% on most goods and services.
- Some goods or services are zero-rated (taxed at 0%) or exempt (not subject to VAT).
If your business is VAT-registered, you must include VAT correctly on invoices. If you are not VAT-registered, you cannot add VAT. With ProInvoice, it’s simple to calculate and show VAT on invoices accurately.
Who Must Register for VAT?
You must register for VAT if your business’s annual turnover exceeds R1 million.
Once registered, you must issue proper VAT invoices to clients. If you’re not registered, you must not include VAT on your invoices. This distinction is important—adding VAT incorrectly can create compliance issues.
Using ProInvoice makes this easier by letting you set VAT options directly in your invoice templates.
What Must a Tax Invoice Include?
To comply with South African law, a valid tax invoice must include:
- The words “Tax Invoice”, “VAT Invoice”, or “Invoice”.
- Your business name, address, and VAT registration number (if applicable).
- The client’s details.
- Invoice date and a unique invoice number.
- A clear description of goods or services supplied.
- The price excluding VAT, the VAT amount, and the total including VAT.
ProInvoice provides ready-made templates that include all of these required details, ensuring compliance and professionalism.
How to Add Tax to Your Invoice
When VAT applies, you must:
- Apply the correct rate (usually 15%).
- Show the amount before VAT, the VAT charged, and the total payable.
- Ensure your invoice is complete and accurate.
With ProInvoice, you simply add your items, select VAT, and the platform calculates everything for you—no manual errors.
Why Accuracy Matters
If your invoices are missing tax details or incorrectly show VAT, you risk:
- Losing client trust.
- Facing compliance penalties.
- Creating problems during tax returns or audits.
By issuing invoices through ProInvoice, you avoid these risks and maintain a clear, professional record.
How ProInvoice Simplifies Tax Invoicing
Here’s how ProInvoice supports South African businesses:
- Ready-to-use VAT-compliant invoice templates.
- Automatic VAT calculations at 15%.
- Organized invoice history for tax reporting.
- Professional layout that builds trust with clients.
- Quick reminders and tracking for unpaid invoices.
And when you’re ready to streamline your invoicing, you can sign up to ProInvoice here.
Final Thoughts
Handling tax on your invoices is not optional—it’s part of running a credible, compliant business in South Africa. Whether you’re just starting out or already VAT-registered, understanding how to issue proper invoices ensures smoother operations and stronger client relationships.
By using ProInvoice, you remove the guesswork. Every invoice you send is professional, clear, and tax-compliant.
