VAT on all imports
By Bruce Cameron
Co-author to The Ultimate Guide to Retirement in South Africa
National Treasury is asking Parliament to change VAT rules so that the tax will also apply to imports that were previously free, namely R500 or less value on imports.
These may be imported from one of the mail order companies, such as Shein and Temu, or even imported when you have been on a foreign trip.
So, for example, if you are a grandparent visiting children abroad you must be careful what you bring back.
In the legislation it is proposed that the current tax-free VAT limit on imported goods will be removed. This means that from when the legislation is promulgated on low-value imports will be subject to VAT at 15,5 percent.
This will also include paying VAT on any imported good you bring into South Africa when you travel overseas.
When the law is approved it will provide for a simplified customs entry regime for the entry of goods imported or exported for purposes of express delivery on a door-to-door basis.
In the draft legislation it is proposed that express goods below an upper limit may be entered in accordance with simplified procedures which are still to be determined by the Commissioner of the South African Revenue by regulation.
So, you will have to declare any goods brought into South Africa, even
though the value for duty purposes is below R500 and no duty is payable. You will pay VAT.
You have always needed to be very careful of any costly goods you take with you out of South Africa and then bring back.
National Treasury says the VAT Act provides for the exemption of goods under specific conditions which are outlined in the section ‘Goods imported by immigrants, tourists, returning residents and other passengers for their personal use’
This includes the exemption that only applies ‘if the goods can be identified as being the same goods which were removed from the Republic.’
This includes personal effects, sporting and recreational equipment, new or used, which is:
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Imported either as accompanied or unaccompanied passengers’ baggage by non-residents of the Republic for their own use during their stay in the Republic.
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Exported by residents of the Republic for their own use while abroad and subsequently re-imported either as accompanied or unaccompanied passengers’ baggage by such residents.
The big issue is that you need to prove it to SARS. It is not SARS that must disprove your claim that you took the goods out of South Africa.
This means you should have a receipt for the goods you are taking out or you must declare them at the SARS counter at your place of departure
National Treasury and SARS hereby invite comments in writing on the 2025 draft Tax Laws Amendment Bill on the draft regulations on the domestic reverse charge and draft “export” regulations.
Please forward written comments to the National Treasury’s tax policy depository at
2025AnnexCProp@treasury.gov.za and SARS at 2025legislationcomments@sars.gov.za
Read more on other topics here:
https://retirementplanning.co.za/cape-town-wealth-tax-rates-increase/
https://retirementplanning.co.za/what-99-of-retirees-regret-and-how-you-can-avoid-it/
https://retirementplanning.co.za/you-may-need-to-be-80-before-you-retire/
https://ascor.co.za/how-to-draft-a-will/