What duties are levied on imported goods?
Three kinds of duties are levied on imported goods:
- Customs duties (including additional ad valorem duties on certain luxury or non-essential items)
- Anti-dumping and countervailing duties
- VAT (which is also collected on goods imported and cleared for home consumption).
Anti-dumping and countervailing duty
Anti-dumping and countervailing duties are levied:
- On goods considered to be “dumped” in South Africa; and
- On subsidised imported goods.
These goods are the subject of investigations into pricing and export incentives in the country of origin; the rate imposed will depend on the result of the investigations. These duties are either levied on an ad valorem basis (as a percentage of the value of the goods) or as a specific duty (as cents per unit). The amount and type of duty imposed on a product are determined by the following main criteria:
- The value of the goods (the customs value)
- The volume or quantity of the goods
- The tariff classification of the goods (the tariff heading).
How is VAT calculated on imported goods?
The VAT rate in South Africa is currently 15%. To calculate VAT on imported goods, the ATV (added tax value) needs to be determined first. This is done as follows: [(Customs Value + 10% thereof) + (any non-rebated duties levied on the goods)] x 15%= [ATV] x 15%= VAT payable
- The 10% mark-up on the customs value in this calculation is applicable when goods are imported from a country outside the Customs Union. Therefore, if goods have their origin in any of the BLNS countries (Botswana, Lesotho, Namibia, or Swaziland), the 10% will not be added to the calculation.
- When goods are exported to any of the BLNS countries, the same applies (no mark-up on the customs value to determine ATV).