How to Calculate Customs Duties and VAT on Imports into South Africa
Planning to import goods into South Africa? Before you order, it's essential to understand the customs duties and VAT that could significantly affect your final costs. These charges are regulated by SARS (South African Revenue Service) and apply to all imports.
Whether you're importing for personal use or as a business, this guide breaks down the key concepts — clearly and simply — to help you stay compliant and in control.
What Are Customs Duties and VAT?
When goods arrive in South Africa, SARS charges customs duties and Value-Added Tax (VAT) to raise revenue.
- Customs duties are taxes on imported goods, calculated based on their classification in the Customs Tariff Book, using international HS (Harmonized System) codes.
- There are two types:
- Ordinary duties (Schedule 1)
- Ad valorem duties (Schedule 2b), often referred to as "luxury duties"
- VAT is currently set at 15% in South Africa.
How to Calculate Duties and VAT: Step-by-Step
Step 1: Determine the Customs Value
This is the FOB (Free on Board) value — usually the invoice amount plus delivery to the export depot, airport, or harbour. It is converted from forex based on exchange rates on the day of import.
Let’s assume SARS determines the customs value as R1,000 for the below example.
Step 2: Identify the Correct HS Code
Use SARS’s classification list (yes, it's nearly 700 pages long!) to find your product's HS code. Some codes are super specific:
Example 1:
HS Code: 6101.90.6
Description: Men's or boys' overcoats, car-coats, capes, cloaks, anoraks...
Others are much broader:
Example 2:
HS Code: 8528.59.90.5
Description: Monitors (general category — includes most, but not all, computer monitors).
Then, determine your product's region of origin (General, EU/UK, EFTA, SADC, MERCOSUR, AfCFTA), as this can affect the duty rate.
- Example 1 duty range: 0–40%
- Example 2 duty range: 0–25%
Check if any ad valorem duties apply via Schedule 2b. These typically range between 0–9%.
Pro Tip: Choosing the wrong HS code can result in penalties. Classification accuracy is key to avoiding delays and extra costs.
Step 3: Calculate Customs Duties
Using the "General" region rates:
- Example 1: 40% Ordinary / 0% Ad Valorem
- Example 2: 25% Ordinary / 9% Ad Valorem
Therefore:
- Example 1 Duties: R400 (Ordinary) / R0 (Ad Valorem)
- Example 2 Duties: R250 (Ordinary) / R90 (Ad Valorem)
Step 4: Calculate VAT
VAT is 15% of:
- The customs value plus a 10% uplift
- Plus ordinary duties
- Plus ad valorem duties
Example 1: 15% of (R1,100 + R400 + R0) = R225
Example 2: 15% of (R1,100 + R250 + R90) = R216
Step 5: Total Import Charges
In our examples:
| Example | Ordinary Duty | Ad Valorem Duty | VAT | Total SARS Charges |
|---|---|---|---|---|
| 1 | R400 | R0 | R225 | R625 (63%) |
| 2 | R250 | R90 | R216 | R556 (57%) |
However if your product qualifies for duty-free import:
- 0% Ordinary + 0% Ad Valorem = VAT only
- VAT = 15% of R1,100 = R165 (16.5%)
Keep in mind, these are SARS charges only. Your courier or freight forwarder may also charge clearance fees, disbursement fees, and shipping costs.
Overwhelmed? We've Got You Covered
We get it — importing can feel like a maze. That’s why Scott Shipping Services is here to simplify the entire process.
- We give you a single, all-inclusive cost before purchase — covering SARS duties, VAT, and shipping fees.
- Use our Quick Estimate Calculator for an instant online quote
- Submit a custom quote request
- Or contact our team for advice on your next shipment
Shop Global! Ship Local!.
If you’re planning your next import, don’t leave it to chance. Scott’s Shipping Services is here to make the process smooth, cost-effective, and fully compliant. Get your quick estimate today using our online calculator, or contact us for expert advice on your shipment.
