How do I handle multi-currency invoicing in South Africa?

# How to Handle Multi-Currency Invoicing in South Africa **Yes, you can issue VAT invoices in foreign currency in South Africa, but you must comply with specific SARS requirements including showing Rand equivalents and using approved exchange rates.** ## SARS Requirements for Foreign Currency Invoices When issuing invoices in foreign currency, your tax invoice must include: - **The foreign currency amount** - **The Rand equivalent amount** - **The exchange rate used** - **The date of the exchange rate** Both amounts must appear clearly on the invoice to meet SARS compliance requirements. ## Approved Exchange Rates (BGR 11) Under **Binding General Ruling 11 (BGR 11)**, you must use exchange rates from one of these approved sources: - **South African Reserve Bank (SARB)** - **Bloomberg** - **European Central Bank** You can choose one of three exchange rate options: 1. **Daily rate on the time of supply date** 2. **Daily rate on the last day of the month preceding supply** 3. **Average rate for the month of supply** Once you select an option, you must use it consistently for the entire VAT period. ## VAT Calculation Process **Step 1:** Calculate VAT on the foreign currency amount **Step 2:** Convert both the foreign currency amount and VAT to Rands using your chosen exchange rate **Step 3:** Show all amounts clearly on the invoice The **15% VAT rate** applies to the foreign currency amount before conversion to Rands. ## Exchange Rate Documentation Maintain proper records including: - Source of exchange rates used - Dates of rates applied - Conversion calculations - Consistent methodology documentation SARS requires this documentation for audit purposes. ## Common Compliance Mistakes **Avoid these errors:** - Using unofficial exchange rates (like XE.com) - Inconsistent rate selection within VAT periods - Missing Rand equivalents on invoices - Incorrect VAT calculations on foreign amounts ## Practical Implementation Most accounting software can handle multi-currency invoicing, but ensure it meets SARS requirements. **WeekdayApp's invoicing module automatically handles VAT-compliant multi-currency invoicing with approved exchange rates**, helping South African accounting practices stay compliant from R199/user/month. For complex multi-currency transactions, consult with a tax professional to ensure full compliance with current SARS regulations.