Cardinal Toolworks

Country guide

Importing into South Africa

South Africa is the country importers most often get wrong, because VAT is not charged on the customs value. It is charged on the added tax value: the customs value uplifted by 10%, plus non-rebated duty.

Cost a South African shipment

The order of calculation

  1. Customs value. Normally the transaction value of the goods, brought to the customs valuation basis your declaration uses. Your clearing agent will confirm which elements of freight and insurance are included for your terms of sale.
  2. Customs duty. Customs value × the rate for your tariff heading. Trade agreements and rebates can reduce or remove it, which then affects the VAT base.
  3. Added tax value (ATV). Customs value plus an uplift — 10% for goods imported from outside the BLNS countries — plus non-rebated duty.
  4. Import VAT. The standard rate, applied to the ATV. Because of the uplift, VAT is always higher than a naive calculation on invoice value suggests.
  5. Clearing and delivery. Agent fees, port and terminal handling, documentation, cargo dues, storage and inland transport from Durban, Cape Town or Gqeberha.

The uplift, plainly

Take a customs value of R500,000 with duty of R50,000. The 10% uplift adds R50,000, so the uplifted value is R550,000. Add the non-rebated duty of R50,000 and the added tax value is R600,000. VAT at 15% on that is R90,000 — against R75,000 if you had wrongly applied 15% to the customs value. That R15,000 gap is entirely the uplift, and it is cash you finance before the goods sell.

Where importers get caught

  • Applying VAT to the invoice. It is the single most common costing error in South African importing.
  • Forgetting the BLNS distinction. The 10% uplift does not apply to goods imported from Botswana, Lesotho, Namibia and Eswatini. Origin changes the arithmetic.
  • Rebated duty in the VAT base. Only non-rebated duty belongs in the ATV. A rebate reduces both duty and VAT.
  • Treating VAT as a cost when you are a registered vendor. It is usually recoverable — but it is always a cash-flow cost, and TrueCost shows it as such.
  • Cargo dues and storage. Transnet charges and container detention are landed costs, not overheads.

Verify before you commit

Confirm your tariff heading, duty rate, rebate eligibility and the current VAT rate with SARS or your clearing agent, record the source and the date you checked, and enter those figures. The South Africa preset in TrueCost pre-fills the 10% uplift and the standard VAT rate, and every one of those values is editable.

Cost a shipment free