How import duty and VAT are calculated in South Africa

Import VAT in South Africa is charged on the customs value plus any customs duty plus a further uplift of 10% of the customs value. The 15% VAT rate is then applied to that total (SARS). Customs duty itself depends on the tariff classification, valuation and origin of the goods. This guide explains the steps; it is general information, not tax advice.

Key facts

• VAT rate on imports: 15%, in force since 1 April 2018 (SARS).
• VAT base: customs value + duty + 10% of the customs value (SARS).
• The 10% uplift is not added for goods originating from Botswana, Eswatini (formerly Swaziland), Lesotho or Namibia (SARS).
• Customs duty is set in the schedules to the Customs and Excise Act and is usually a percentage of value (SARS).

How is import VAT calculated in South Africa?

SARS defines the VAT base for imports as "Customs Value, plus any duty levied on the goods, plus 10 per cent of the Customs Value". The VAT rate of 15% applies to that amount, according to the SARS guidance on VAT on imported goods.

The 10% uplift is an add-on to the base. It is not a separate tax, and it is not added when the goods originate from Botswana, Eswatini, Lesotho or Namibia (SARS).

Can you show a worked example?

SARS gives its own example. Take goods with a customs value of R1,000 and duty of R100. The base is R1,000 + R100 + R100 (10% of the customs value) = R1,200, and VAT at 15% is R180 (SARS worked example).

For the same goods originating from one of the four countries above, the base is R1,100 and VAT is R165, per the same SARS page.

Real shipments add other lines, such as excise or other levies on some products. Treat the example as the method, not as a quote for your goods.

What is customs duty and how is it set?

Customs duty is a tax on imported goods, imposed under the Customs and Excise Act 91 of 1964, to raise revenue and protect the local market. SARS says duties are "usually calculated as a percentage of the value of the goods", with rates set in the schedules to the Act (SARS duties and taxes).

Some products, such as certain foods, textiles and firearms, use other methods: a percentage or a fixed amount per unit such as per kilogram or per metre. Certain luxury items also carry additional excise duties, according to the same SARS page.

What decides the duty rate for my product?

Three things decide it: tariff classification, valuation and origin. SARS names these as the three key customs areas that determine the duty payable (SARS duties and taxes).

• Tariff classification. Your product is assigned a tariff heading (based on the HS code system). The heading determines the rate in the schedules to the Act. The SARS schedules page is the place to read the current text.
• Valuation. The customs value is the starting figure for both duty and VAT. How it is built up (for example, whether freight and insurance are included) follows SARS valuation rules, so confirm the basis for your shipment with a customs broker.
• Origin. Where the goods come from can change the rate, for example under trade agreements, and it affects the VAT uplift as described above.

Who calculates and pays at the border?

The importer is the party registered with SARS Customs, and declarations are lodged by registered importers or their clearing or registered agents (SARS goods declaration). In practice most foreign manufacturers agree with the buyer whether the buyer or the exporter's agent handles clearance.

Agree the trade terms (Incoterms) in the contract so that it is clear who pays duty and VAT. Duty and import VAT are normally a cost for the importer of record, which matters when you quote a landed price.

How do I estimate the landed cost before quoting?

Start from the customs value, add the duty for your tariff heading, add 10% of the customs value, and apply the 15% VAT rate to that base, following the SARS method. Then add freight, port, clearing and inland costs. Whether the buyer can recover import VAT depends on its own VAT status, so the cash-flow effect and the final cost differ; ask the buyer's accountant.

Work in a simple table: one row for each element (customs value, duty, uplift, VAT base, VAT), with the source of each number next to it. A buyer or broker can then check your estimate line by line and correct only the line that is wrong.

B2B.Africa has a duty calculator for imports into South Africa: enter an HS code and the country of origin to see the duty rate recorded for that pair, with its source and effective date. The table is still short, and it holds only two origin countries — China, on the general (MFN) rate, and Botswana, on the SADC preferential rate — so your heading may not be in it yet, and it does not replace a classification ruling or a broker's declaration.

Where should I confirm the final numbers?

Rates change over time, so always read the current schedule rather than a figure from an old quote or an article. Confirm classification, valuation and any permit requirements with SARS or a licensed customs broker before you ship. Rates and rules change, and a wrong classification is a common source of disputes at the border. This article reflects the SARS pages listed below on 2026-10-09 and is not legal or tax advice.