SARS Tax Invoice Requirements for Restaurants: Everything You Need to Know

If you run a restaurant in South Africa, SARS tax invoice requirements aren’t optional. The South African Revenue Service expects every VAT-registered business — including restaurants — to issue proper tax invoices and keep records that can withstand an audit. With e-invoicing regulations on the horizon and real-time VAT reporting coming, getting your SARS invoicing for restaurants right now saves you headaches, penalties, and last-minute scrambles later.

This guide covers everything you need to know about SARS tax invoice requirements for restaurants: when you must register for VAT, what must appear on a tax invoice, the difference between full and abridged invoices, how digital receipts (SMS, email, WhatsApp) fit in, and what’s changing with e-invoicing and real-time reporting. We also explain record-keeping rules and how a POS system like Tafela can keep you compliant without the admin burden.

VAT Registration: Does Your Restaurant Need to Register?

Before you worry about invoice layout, you need to know whether you’re required to charge VAT at all.

Mandatory VAT registration

You must register for VAT if your taxable turnover (from selling food, drinks, and other taxable supplies) has exceeded R1 million in any consecutive 12-month period, or if you reasonably expect it to exceed R1 million in the next 12 months. Once you cross that threshold, you have 21 days from the end of the month in which it happened to apply for VAT registration. Restaurants that have grown quickly — or that do a mix of dine-in, takeaways, and catering — often hit this sooner than they expect.

Voluntary registration below the threshold

If your turnover is below R1 million, you can still voluntarily register for VAT. Many restaurants do this because:

They want to claim input VAT on equipment, fit-out, and supplies.
They’re planning to grow and prefer to be compliant from the start.
Corporate or government clients expect a VAT number on invoices.

Voluntary registration comes with obligations: you must issue tax invoices, submit VAT returns, and keep proper records just like any other VAT vendor.

Consequences of not registering when you should

If you’re required to register and don’t, SARS can:

Register you retrospectively and demand VAT on past turnover.
Levy penalties and interest.
Treat you as non-compliant, which can affect future dealings with SARS.

If you’re unsure whether your restaurant should be registered, speak to a tax practitioner or use SARS’s VAT registration guidance. Getting this right is the foundation for everything that follows — including restaurant VAT invoicing in South Africa.

What Must Appear on a Tax Invoice

SARS specifies exactly what must be on a valid tax invoice. Missing elements can mean the document isn’t accepted as a proper tax invoice, which can affect your customer’s ability to claim input VAT and your own audit trail.

Full tax invoice requirements

A full tax invoice must include:

The words “Tax Invoice” — clearly stated.
Name, address, and VAT registration number of the supplier (your restaurant).
Name, address, and (if the customer is a VAT vendor) the customer’s VAT number.
Invoice number — unique and sequential, or a unique identifier that can be traced.
Date on which the invoice is issued.
Description of the goods or services — enough detail to identify what was supplied.
Quantity or volume of goods or services.
Value of the supply (excluding VAT) — the taxable amount.
Rate of VAT (e.g. 15%) and the VAT amount.
Total amount payable (including VAT), or a clear statement that the amount includes VAT.

SARS may accept minor variations in layout, but all of the above must be present and verifiable. For a full breakdown, see the SARS VAT 404 Guide.

Abridged tax invoice (under R5,000)

For a single supply of R5,000 or less (including VAT), you may issue an abridged tax invoice instead of a full one. It must still include:

The words “Tax Invoice” (or “Abridged Tax Invoice”).
Your name, address, and VAT registration number.
Invoice number (or unique identifier).
Date of issue.
Description of the goods or services.
Total amount payable, and either:
- The VAT amount, or
- A statement that the amount includes VAT at 15%, or
- The VAT-inclusive amount with a clear indication that VAT is included.

You do not have to show the customer’s name and address, or a separate line for “value excluding VAT,” on an abridged invoice — which makes it well suited to till receipts and quick-service sales.

Why this matters for restaurants

Most sit-down restaurant bills are under R5,000, so an abridged tax invoice is usually enough for day-to-day sales. For larger orders — catering, functions, or corporate accounts — you’ll typically need a full tax invoice so the client can claim input VAT and meet their own record-keeping requirements. We’ll look at when to use each in the next section.

Full vs Abridged Tax Invoices for Restaurants

Choosing the right invoice type keeps you compliant and keeps your customers (and their accountants) happy.

When to use an abridged tax invoice

Use an abridged tax invoice when:

The total value of the supply is R5,000 or less (including VAT).
You’re issuing a till slip or receipt at the point of sale — e.g. a table bill, a takeaway order, or a coffee and pastry.

Practical examples:

A couple’s dinner bill of R850 → abridged tax invoice (e.g. till slip with “Tax Invoice,” your details, VAT number, date, description of items, total including VAT).
A takeaway order of R320 → abridged tax invoice.
A single table’s bill of R4,200 → still under R5,000, so abridged is acceptable.

Many restaurants use their POS to print or email an abridged tax invoice automatically for every sale. It’s fast, compliant, and avoids manual paperwork.

When to use a full tax invoice

Use a full tax invoice when:

The total value of the supply exceeds R5,000 (including VAT), or
The customer (often a business) requests a full tax invoice so they can claim input VAT and meet their audit requirements.

Practical examples:

A catering order for a corporate event: R45,000 → full tax invoice with client name, address, VAT number (if applicable), line items, value excluding VAT, VAT amount, and total.
A wedding function at your venue: R85,000 → full tax invoice.
A company opening account with monthly billing of R12,000 → full tax invoice for each statement or invoice run.

Even if a single table’s bill is under R5,000, a corporate client may ask for a full tax invoice for their records. You’re allowed to issue a full invoice for any amount; you only have the option to use abridged when the total is R5,000 or less.

Summary table

Scenario	Invoice type	Reason
Table bill R2,500	Abridged	Under R5,000
Takeaway R180	Abridged	Under R5,000
Catering R18,000	Full	Over R5,000
Corporate account invoice R8,000	Full	Over R5,000; client needs full details
Single table R4,800, client asks for full invoice	Full	You may always issue full if requested

Getting this right is part of restaurant compliance and regulations in South Africa — alongside things like health and safety and, for many, planning for load-shedding.

Digital Receipts: SMS, Email, and WhatsApp

Customers increasingly expect receipts by SMS, email, or WhatsApp instead of (or in addition to) paper. SARS does accept electronic tax invoices, provided they meet the same content requirements as paper ones and are stored and retrievable for the required period.

SARS stance on electronic invoices

SARS allows tax invoices to be issued and stored electronically. There is no rule that says a tax invoice must be printed. The critical points are:

The content must satisfy the requirements for either a full or abridged tax invoice (as above).
The format (PDF, email body, SMS, WhatsApp, etc.) must contain or link to that content in a way the recipient can keep and produce if needed.
You must keep a copy or an audit trail that can be reproduced for at least 5 years (see record-keeping below).

Requirements for digital delivery

Email: Attaching a PDF tax invoice to an email is widely accepted. The PDF should contain all required fields. Sending a link to a secure portal where the customer can view and download the invoice is also acceptable, provided the document is available and the same as what you keep on file.
SMS: SMS is often used for short receipts. For a valid tax invoice via SMS, the message should either include the key details (supplier name, VAT number, date, description, total, and VAT statement) or contain a link to the full invoice. If the SMS only says “Your receipt is ready at [link],” the linked document must be the full or abridged tax invoice.
WhatsApp: Same principle: the message can contain the invoice as a document (e.g. PDF) or a link to it. The document must meet SARS content requirements.

In all cases, the recipient must be able to retain the invoice (e.g. save the PDF or take a screenshot of the key details). Sending a digital receipt that disappears or can’t be stored may not satisfy SARS or your customer’s auditor.

Retention requirements for digital invoices

You must keep your own copy of every tax invoice you issue (and every tax invoice you receive for your purchases) for at least five years from the date of the invoice. Electronic storage is fine — and often easier to search and back up — as long as it’s secure, legible, and reproducible. We cover this in more detail in the record-keeping section.

A POS that generates SARS-compliant invoices and can send them by email, SMS, or WhatsApp — while also storing a copy in the cloud — reduces the risk of lost slips and non-compliance. Tafela does exactly this: it produces full and abridged tax invoices and can deliver them digitally while keeping records in the cloud.

E-Invoicing: What’s Coming for SA Restaurants

E-invoicing is not yet mandatory in South Africa, but it is regulated, and the direction of travel is clear. Planning now will make the transition easier.

Current position: electronic invoices need authorisation

Today, electronic invoices (as opposed to scanned paper or PDFs of the same layout) that are submitted or exchanged in a structured electronic format may require prior authorisation from SARS or National Treasury, depending on the exact use case. Many businesses already issue “electronic” invoices in the form of PDFs sent by email; that’s generally treated as a digital version of a traditional invoice. The coming change is about structured e-invoicing and real-time reporting — sending invoice data in a standard format that systems can read and that SARS can receive on a timeline.

Timeline: 2026–2028

2026–2027: Phased rollout begins, with large taxpayers among the first to be brought into e-invoicing and real-time VAT reporting.
2028: Full operational capability and mandatory e-invoicing are targeted for this period. Smaller businesses, including many restaurants, will be brought in according to the phased plan.

So: when will e-invoicing become mandatory for restaurants? Not yet — but from 2026 onwards the system is rolling out, and mandatory participation for broader business (including restaurants) is aimed for around 2028. Stay tuned to SARS and National Treasury announcements for exact dates and thresholds.

Five-Corner Model (Peppol-like)

South Africa is moving toward a Five-Corner Model for e-invoicing, similar in concept to Peppol used in other countries. In this model:

Buyer and seller exchange invoice data through accredited access points (service providers).
SARS (and possibly National Treasury) sits in the flow so that invoice data can be validated and used for compliance and real-time reporting.
The idea is a single, standard way to send and receive invoice data so that systems can talk to each other and SARS can receive data without every business building a custom link.

For restaurants, this will likely mean that your POS or accounting software will need to connect to an accredited access point or service that can send and receive e-invoices in the required format. Choosing a POS that is built with compliance in mind — and that can adapt to new e-invoicing rules — will put you in a better position when the mandate applies to you.

Real-time VAT reporting

Alongside e-invoicing, SARS is moving toward real-time VAT reporting:

Data submission is required within 24 hours of the supply (or as prescribed).
The intention is to shorten this to 6 hours, and then to 1 hour, so that VAT data reaches SARS much closer to the time of the transaction.

For a restaurant, that means your systems will need to capture sales and VAT correctly at the point of sale and be able to submit or expose that data quickly. A POS that already generates correct tax invoices and keeps structured sales data will be easier to connect to real-time reporting when the time comes.

What restaurants should do now

Get current invoicing right — full and abridged tax invoices, correct VAT, and proper record-keeping. This is the base everything else builds on.
Use a POS that generates SARS-compliant invoices and stores data in a structured way (e.g. in the cloud with clear audit trails).
Watch for SARS and National Treasury updates on e-invoicing phases and mandatory dates for your segment.
Ask your software provider (POS, accounting) how they plan to support e-invoicing and real-time VAT reporting so you’re not left scrambling in 2027 or 2028.

Record-Keeping Requirements

SARS doesn’t only care about what you give the customer — they care about what you keep.

5–7 year archive requirement

You must keep records of your business transactions, including tax invoices (both issued and received), for at least five years from the date of the last entry in the relevant record. In practice, many advisers recommend keeping tax invoices and VAT records for five to seven years to be safe, especially where audits or disputes can arise later. These records can be kept in electronic form (e.g. PDFs, database exports) as long as they are:

Complete — no gaps or missing invoices.
Legible and reproducible — you can produce them if SARS asks.
Secure — protected from unauthorised alteration and from loss (e.g. backups).

What to keep

Tax invoices you issue — every full and abridged invoice, whether printed or sent digitally. A copy of what the customer received (or the same data in your system) is what you need to retain.
Tax invoices you receive — from suppliers, for stock, equipment, services, etc., so you can support your input VAT claims.
VAT returns and working papers.
Supporting records — till rolls, daily sales summaries, bank statements, and anything that ties your invoices to your actual sales and VAT calculations.

Penalties for non-compliance

Failing to keep records, or failing to produce them when SARS requests, can lead to:

Administrative penalties under the Tax Administration Act.
Assessments based on SARS’s best judgment (which may be less favourable to you).
Criminal prosecution in serious cases of deliberate destruction or concealment.

Keeping records in the cloud — with automatic backup and a clear audit trail — reduces the risk of lost slips and non-compliance. Tafela stores your invoices and sales data in the cloud so you have a single place to go when you need to produce records for SARS or your accountant.

How a POS System Helps You Stay Compliant

A modern restaurant POS can take most of the heavy lifting out of SARS tax invoice requirements.

Automatic tax calculation

The POS should apply VAT correctly to taxable supplies (e.g. standard-rated food and drink) and handle zero-rated or exempt items if you have any. That means the amount on the invoice is right before you ever issue it — no manual recalculating or spreadsheet errors.

Compliant invoice generation

The system should produce full and abridged tax invoices that contain all mandatory fields: “Tax Invoice,” your details, VAT number, invoice number, date, description, amounts, VAT amount or statement, and total. When the sale is over R5,000 (or when you choose to issue a full invoice), it should add customer details and value excluding VAT. Tafela generates both full and abridged SARS-compliant invoices from the till, so staff don’t have to remember the rules for every transaction.

Digital receipt delivery

Sending the invoice by email, SMS, or WhatsApp meets customer expectations and reduces paper. The POS should attach or link to the actual tax invoice (same content as above) so that what the customer gets is what you’re required to keep. Tafela sends digital receipts via SMS, email, or WhatsApp, with the compliant invoice attached or linked.

Archive and storage

Keeping every invoice for five to seven years is easier when the POS stores them automatically — in the cloud, with backups. You then have one place to search and export for SARS or your accountant. Tafela stores all records in the cloud so you don’t rely on till rolls or a single device.

Reporting for VAT returns

A POS that tracks sales by VAT type (standard-rated, zero-rated, etc.) and can export or report by period makes it easier to complete your VAT return and reconcile with your invoices. That doesn’t replace your accountant, but it gives you the data you need to stay compliant.

Frequently Asked Questions

Do restaurants need to issue tax invoices for every sale?

If you’re VAT-registered, you must issue a proper tax invoice (full or abridged, as applicable) for taxable supplies. For most restaurant sales, that means every sale where VAT applies. For a single supply of R5,000 or less (including VAT), an abridged tax invoice is enough. For supplies over R5,000 — or when the customer needs a full invoice — you must issue a full tax invoice. There’s no exemption for “small” cash sales; if you’re a VAT vendor, the sale is taxable and must be invoiced correctly.

What is the difference between a full and abridged tax invoice?

A full tax invoice must include supplier and customer details, VAT numbers, invoice number, date, description, quantity, value excluding VAT, VAT rate and amount, and total. It’s required for supplies over R5,000 (including VAT) and when the customer needs it for their records. An abridged tax invoice can be used for supplies of R5,000 or less and doesn’t need the customer’s name and address or a separate “value excluding VAT” line; it must still show “Tax Invoice,” your details and VAT number, date, description, total, and a clear VAT statement (amount or “includes VAT at 15%”).

When will e-invoicing become mandatory for restaurants?

E-invoicing is not yet mandatory for all businesses. The phased rollout starts in 2026–2027 with large taxpayers. Full operational capability and mandatory e-invoicing are targeted for 2028, with smaller businesses (including many restaurants) brought in according to the phased plan. Restaurants should get current invoicing and record-keeping right now and choose a POS that can adapt to e-invoicing and real-time VAT reporting when the mandate applies.

How long must I keep tax invoices?

You must keep records, including tax invoices you issue and receive, for at least five years from the relevant date (generally the date of the last entry in that record). Many practitioners recommend five to seven years to be safe. Records can be kept electronically (e.g. PDFs, cloud storage) as long as they are complete, legible, reproducible, and secure.

Can I send tax invoices by WhatsApp or SMS?

Yes. SARS accepts electronic tax invoices, including those delivered by email, SMS, or WhatsApp. The invoice must still contain all required content (as for a full or abridged tax invoice), and the recipient must be able to retain it (e.g. save the PDF or a link to it). You must also keep your own copy for at least five years. A POS that generates compliant invoices and sends them digitally — while storing a copy in the cloud — keeps you on the right side of SARS and your customers.

Conclusion

SARS tax invoice requirements for restaurants boil down to: register for VAT when you must, issue full or abridged tax invoices that contain everything SARS requires, deliver them on paper or digitally (email, SMS, WhatsApp) in a way customers can keep, and store your own copies for at least five years. With e-invoicing and real-time VAT reporting rolling out from 2026 toward a 2028 mandate, getting your invoicing and record-keeping right now puts you in a strong position.

Using a POS that is built for South African compliance — with automatic tax calculation, compliant full and abridged invoices, digital receipt delivery, and cloud-based record keeping — reduces errors and admin and keeps you ready for what’s next. If you’re setting up or upgrading your restaurant systems, see our best restaurant POS comparison and our guide on how to start a restaurant in SA for more context.

Tafela handles SARS-compliant invoicing automatically — full and abridged tax invoices, digital receipts via SMS, email, and WhatsApp, and cloud-based record keeping. Get compliant from R199/mo.