ComplianceTaxSouth AfricaInvoicing

The Comprehensive Guide to SARS Compliance for South African SMEs

•Qyri Team
The Comprehensive Guide to SARS Compliance for South African SMEs

SARS Compliance: A Playbook for SA Small Businesses

Running a business in South Africa implies navigating the complexities of the South African Revenue Service (SARS). For many entrepreneurs, "compliance" sounds like a headache, but getting it right from day one is the best way to protect your business and ensure growth.

1. Valid Tax Invoices: The Golden Rule

If you are VAT registered, you cannot just send any piece of paper and call it an invoice. SARS is very specific about what constitutes a Valid Tax Invoice. If your invoice doesn't meet these criteria, your clients cannot claim back VAT, which makes you a "risk" to deal with.

Checklist for a Valid Tax Invoice (over R5,000)

  • The words "Tax Invoice": Must be clearly displayed.
  • Name, address, and VAT number of the supplier (You).
  • Name, address, and VAT number of the recipient (Your Client).
  • Serialized Invoice Number: Must be unique and sequential.
  • Date: The date of issue.
  • Description of Goods/Services: Clear details of what was sold.
  • Quantity/Volume: How much was sold.
  • Value: The amount excluding VAT, the VAT amount, and the total including VAT.

Pro Tip: Qyri automatically generates SARS-compliant tax invoices. You just enter your details once, and we handle the formatting for every single invoice.

2. VAT Registration: When is it mandatory?

  • Mandatory: If your taxable turnover exceeds R1 million in any consecutive 12-month period.
  • Voluntary: You can register voluntarily if your turnover exceeds R50,000 in the past 12 months.

Being VAT registered adds credibility to your business, but it also adds admin. You'll need to submit VAT201 returns every two months (usually).

3. Record Keeping

SARS requires you to keep records for 5 years. This includes:

  • Invoices issued.
  • Invoices received (Expenses).
  • Bank statements.
  • Deposit slips.

Paper receipts fade. Keeping digital records is not just convenient; it's safer.

How Qyri Helps

Qyri isn't just an invoicing tool; it's your compliance partner.

  1. Automated Compliance: Our invoice templates are built to meet SARS standards.
  2. Digital Archive: We store all your invoices and quotes securely in the cloud, meeting the record-keeping requirement.
  3. Expense Tracking: Snap photos of your expenses and link them to your projects.

Start your free trial today and stop worrying about the tax man.