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Amended VAT Act

A 2003 amendment to the VAT Act saw the introduction of the requirement that, where a purchaser is a VAT vendor, such purchaser"™s VAT registration number must be included on a tax invoice with effect from 1 March 2005. This requirement pertains to supplies where the consideration in respect thereof is R1000 or more.  It also applies to credit and debit notes in respect of such supplies.  Effectively, from 1 March 2005 VAT vendors will be denied input tax deductions where their VAT registration numbers are not reflected on supplier"™s tax invoices.

As from 1 March 2005, our VAT number, as reflected above, must be included on all tax invoices exceeding R1 000 submitted to us for payment, to validate our claims for input tax.  This rule also applies to any subsequent debit or credit notes issued in respect of those supplies.

These changes were introduced by the amendment of sections 20(4) and 21(3) of the Value-Added Tax Act, 1991 in terms of sections 175 and 176 of the Revenue Laws Amendment Act (Act 45 of 2003) and published in Government Gazette No. 25864 on 22 December 2003.