Invoices & getting paid

Self-billing invoices in South Africa: rules, agreement and template

Zuvo Team26 October 20267 min read

Self-billing means your customer writes the invoice instead of you. SARS calls it a recipient-created tax invoice, and allows it only when the customer sets the price and controls the quantity or quality of what it buys, both sides are VAT vendors, and they agree in advance that the supplier will not issue its own. Outside those conditions, the customer can lose its input tax deduction.

On this page: what it is · when SARS allows it · the conditions · what the invoice must show · sample agreement · invoice template · mistakes · if you are the supplier · questions

What self-billing is

Normally the supplier issues the tax invoice, within 21 days of making the supply (section 20(1) of the Value-Added Tax Act). Self-billing reverses that. Section 20(2) says a document created by the customer is treated as the supplier's tax invoice when SARS has approved it, the supplier and the customer have agreed that the supplier will not issue its own, and the customer gives the supplier the document and keeps a copy.

SARS uses the term "recipient-created tax invoices", and notes they are also known as self-invoicing. The same arrangement covers credit notes and debit notes. If you searched for a "self-billing invoice template", this is the arrangement you are after, and the rules below come from SARS's own Interpretation Note 56 and Binding General Ruling (VAT) 15.

When SARS allows it

The test is not convenience. SARS accepts that a supplier is sometimes unable to issue an invoice because the customer decides the amount. The customer must determine the price, and also control the quantity or quality of the supply, or be responsible for measuring or testing the goods it buys.

SARS's own examples show what that looks like:

A company pays independent agents a commission that the company calculates from completed sales.
A farmer delivers produce to a co-operative, which weighs it and pays a fixed price per ton.
Subcontractors are paid a percentage of the selling price that the company realises.
A company pays a royalty, set as a percentage of its own monthly turnover, for the right to use someone else's intellectual property.

If you quote a job, do the work and set your own price, you are not in that position, and you issue your own invoice. See the VAT invoice requirements for that.

The conditions the customer must meet

BGR (VAT) 15 gives SARS's approval in advance, so a customer who meets every condition does not need to apply. The customer, who must be a VAT vendor, must:

Get and keep proof of the supplier's VAT registration number.
Have an agreement with the supplier that the supplier will not issue a tax invoice, credit note or debit note for the supplies covered.
Issue an invoice that carries the particulars the VAT Act requires (see the table below), and credit or debit notes that meet section 21.
Give the invoice to the supplier and keep a copy.
Issue the invoice within 21 days of the supply.
Keep the copies for the period the law requires. SARS's VAT guide for vendors says at least five years.

A customer may issue recipient-created credit and debit notes only for invoices it created itself under the arrangement. A customer who does not meet the conditions can apply to SARS in writing with form VAT301.

These documents are older than most SARS guidance. The note is dated 31 March 2014, and SARS's list of binding general rulings (page updated 10 October 2025, checked on 26 October 2026) still shows BGR 15 (Issue 2). Check SARS for any newer version before you rely on the detail.

What the invoice must show

A recipient-created tax invoice carries the same particulars as an ordinary tax invoice. The supplier is still the supplier, and the person writing the document is the recipient.

Section 20(4) and (5) of the VAT Act. Full above R5,000, abridged up to R5,000.
Particular	Full invoice	Abridged invoice
The words "tax invoice" in a prominent place	Yes	Yes
Supplier's name, address and VAT number	Yes	Yes
Recipient's name and address, and VAT number if a vendor	Yes	Not required
Serial number and date of issue	Yes	Yes
Description of the goods or services	Full and proper	Yes
Quantity or volume	Yes	Not required
Value, VAT and total (or the total with a statement that it includes VAT at the rate)	Yes	Yes

The amounts are in rand. Other labels, such as "issued by the recipient under an agreement dated", are not required by the Act, but they make the arrangement easy to see in an audit.

Sample agreement

SARS's note includes an example agreement. This is a plain-language version covering the same points. Adapt it, and have your accountant or attorney check it before you both sign.

AGREEMENT
Recipient-created tax invoices, credit notes and debit notes

Between
[Recipient's legal name and trading name], VAT No: [number]  (the "recipient")
and
[Supplier's legal name and trading name], VAT No: [number]  (the "supplier")

1. The supplier gives the recipient permission to issue tax invoices,
   credit notes and debit notes for the taxable supplies the supplier
   makes to the recipient. [Describe the supplies covered.]

2. Both parties declare that they are vendors registered under the
   Value-Added Tax Act 89 of 1991.

3. The recipient will:
   a. issue each tax invoice, credit note and debit note with the
      particulars the VAT Act requires;
   b. give a copy to the supplier within 21 days of the supply; and
   c. keep a copy for the period the law requires.

4. The supplier will not issue its own tax invoice, credit note or
   debit note for any supply covered by this agreement, and accepts that
   any it does issue is treated as not being a tax invoice for VAT.

5. Each party will tell the other if it stops being a VAT vendor,
   changes its VAT number, transfers its enterprise or part of it, or
   changes its enterprise in a way that could affect this agreement.

Signed at [place] on [date]

Recipient: ______________________    Supplier: ______________________
Witness:   ______________________    Witness:  ______________________

Recipient-created invoice template

A layout for the customer to fill in for each supply. If the amount is R5,000 or less you may use the abridged particulars and leave out the recipient's details and the quantity.

TAX INVOICE
Issued by the recipient under an agreement dated [date]

Invoice no.: [SB-0001]
Date issued: [DD Month YYYY]      Date of supply: [DD Month YYYY]

Supplier (who supplied the goods or services):
[Supplier name]
[Supplier address]
VAT No: [Supplier VAT number]

Recipient (the business issuing this invoice):
[Your business name]
[Your address]
VAT No: [Your VAT number]

Description                       Qty / volume   Price       Total
------------------------------------------------------------------
[Goods or services supplied]      [0]            [R0.00]     [R0.00]
[Goods or services supplied]      [0]            [R0.00]     [R0.00]

                                      Subtotal:                [R0.00]
                                      VAT (15%):               [R0.00]
                                      Total payable:           [R0.00]

Payment: [terms]. A copy has been given to the supplier.

Mistakes that cost input tax

No agreement. Without it, the document is not a valid tax invoice.
Both sides invoicing. Only one tax invoice may be issued for a supply, and the supplier's own is treated as not being one.
Using it when the customer does not set the price. Convenience is not a qualifying reason.
Issuing late. The 21 days run from the supply, not from when the customer got round to it.
No proof of the supplier's VAT number. Keep the registration certificate or a note of the check.
Supplier not registered. The arrangement is between two vendors.

SARS's note says a vendor who deducts input tax on a recipient-created invoice that does not comply will have that deduction disallowed, and can be charged penalties and interest.

If you are the supplier

Read the agreement before you sign it, and make sure the supplies it covers are clearly described.
Do not issue your own tax invoice for those supplies.
Check each invoice against your own records for quantity, price and VAT. The VAT on it is your output tax.
Keep every copy you are given.
Tell the customer straight away if you change your VAT number or stop being registered.

Where Zuvo fits

Zuvo drafts quotes and invoices that you issue as the supplier. It is not built to create invoices on behalf of your suppliers, so it is not the tool for a recipient-created invoice. If you have a self-billing agreement, do not also invoice those supplies. For the rest of your work, where you set the price, Zuvo writes the quote or invoice from a plain-English description, with VAT, in rand.

Invoices for work you price yourself

Describe the job, check the draft, and send a quote or tax invoice with VAT as a PDF.

Try Zuvo free for 7 days, no card

Questions people ask

What is self-billing in South Africa?

Self-billing is when the customer writes the invoice instead of the supplier. SARS calls it a recipient-created tax invoice (and also self-invoicing). It is allowed only when the customer decides the price and controls the quantity or quality of what is supplied, both sides are VAT vendors, and they have an agreement that the supplier will not issue its own tax invoices.

Do I need SARS approval to self-bill?

Not if you meet the conditions in SARS Binding General Ruling (VAT) 15, because the ruling gives the approval in advance. If you do not meet them, SARS's Interpretation Note 56 says you can apply in writing with form VAT301.

Can my customer self-bill me if I am not VAT-registered?

No. The arrangement in section 20(2) of the VAT Act is between a recipient and a supplier who are both registered vendors. If you are not registered you charge no VAT and issue no tax invoice, so the SARS rules do not apply.

How long does the customer have to issue a self-billed invoice?

Within 21 days of the supply, the same period that applies to a supplier's own tax invoice. The customer must give you the invoice and keep a copy.

Can I send my own invoice as well?

No. The Act says it is not lawful to issue more than one tax invoice for a supply, and under a self-billing agreement any tax invoice the supplier issues is treated as not being a tax invoice. Agree not to issue your own for those supplies.

Sources read for this guide: SARS Interpretation Note 56 (Issue 2, 31 March 2014) and SARS's list of binding general rulings. General information, not legal or tax advice. Check your situation with your accountant or SARS before you rely on a self-billing arrangement.