Proforma invoice in South Africa: VAT at 15% and the tax invoice that follows

Pro forma or tax invoice?

SARS lists what a valid full tax invoice contains: the words “Tax Invoice”, “VAT Invoice” or “Invoice”; the supplier’s name, address and VAT registration number; the recipient’s name and address, with their VAT number when they are a vendor; a serial number and date of issue; an accurate description, with the quantity or volume; and the value of the supply, the VAT charged and the consideration.

Because SARS accepts the single word “Invoice” on a tax invoice, the title of your proforma matters. Call it “Pro forma invoice”, number it in its own series and write: “This pro forma invoice is not a tax invoice.” The buyer pays the deposit on the strength of the proforma and claims input tax only on the tax invoice that follows.

What a South African proforma shows

VAT: 15%, and who must register

The standard rate is 15%; the increases to 15.5% and 16% announced in 2025 were reversed. From 1 April 2026, the compulsory registration threshold rises from R1 million to R2.3 million of taxable supplies a year, and the voluntary threshold from R50,000 to R120,000. SARS notes in its Budget 2026 FAQ that these amendments were not yet promulgated, but it processes registrations on the new thresholds from 1 April 2026.

A business that is not a VAT vendor shows no VAT and no VAT number on its proforma.

Full or abridged tax invoice after the proforma

When the sale happens, the type of tax invoice depends on the amount:

• more than R5,000: a full tax invoice;
• R5,000 or less: an abridged tax invoice is allowed;
• R50 or less: no tax invoice is required, although a till slip or similar document supports the buyer’s claim.

The tax invoice must be issued within 21 days of the supply. Keep the lines and prices of the accepted proforma: the buyer’s accounts team will compare them.

Export offers: zero rating needs proof

Goods that a vendor exports directly, consigned to the buyer at an address abroad, can be zero-rated. SARS requires documentary proof, such as the zero-rated tax invoice, the buyer’s order or contract, the customs export documents and proof of delivery abroad, within a time limit, generally 90 days. Without that proof, VAT at 15% applies.

An export proforma is usually in US dollars or euros, shows VAT at 0% with the reason, and states the Incoterms® rule with its named place, for example “FOB Durban (Incoterms® 2020)”. Our Incoterms guide explains how to choose.

Making it with InvoiceProforma

• Choose ZAR: amounts with 2 decimals, or USD for an export offer.
• Add your VAT number and CIPC registration number to your profile; they print on every PDF.
• Set the tax rate to 15%, or 0% with the reason in the note.
• Put your EFT banking details in the footer once.
• When the order is confirmed, turn the proforma into an invoice in one click. Record the deposit as a payment receipt linked to that invoice: the invoice PDF then shows what is paid and the balance due.

InvoiceProforma is not accounting software and does not file VAT returns. Check that your tax invoices contain everything SARS lists.