The ATV Formula — How SARS Calculates Import VAT
Import VAT in South Africa is not calculated on the invoice price. It is calculated on the Adjusted Transaction Value (ATV) — a SARS-specific figure that builds in the customs duty already payable. The formula is fixed by the Customs and Excise Act and applied uniformly by SARS to every commercial importation.
The ATV has three components in order: (1) the FOB customs value, (2) the 10% SARS upliftment, and (3) any non-rebated customs duty payable. Add all three together and you have the ATV. Multiply the ATV by 15% and you have import VAT.
Worked Example: Importing Electronics Worth R50,000 (HS 8517.13 — Smartphones)
Smartphones (HS Chapter 85 — Electrical Machinery) attract 0% Schedule 1 customs duty. This worked example shows how the ATV calculation works with zero duty, then a second scenario with 20% duty (HS 9403.90 — furniture, Chapter 94).
Scenario A: Zero-duty goods (HS 8517.13 — smartphones)
| Step | Amount | Calculation |
|---|---|---|
| FOB customs value | R50,000 | Invoice value, declared FOB |
| 10% SARS upliftment | R5,000 | R50,000 × 10% |
| Customs value (FOB + uplift) | R55,000 | Base for duty calculation |
| Customs duty | R0 | HS 8517.13 = 0% Schedule 1 rate |
| ATV (customs value + non-rebated duty) | R55,000 | R55,000 + R0 = R55,000 |
| Import VAT (15% of ATV) | R8,250 | 15% × R55,000 |
| Total payable to SARS | R8,250 | Duty (R0) + VAT (R8,250) |
Scenario B: Dutiable goods (HS 9403.90 — wooden furniture, 20% duty)
| Step | Amount | Calculation |
|---|---|---|
| FOB customs value | R50,000 | Invoice value, declared FOB |
| 10% SARS upliftment | R5,000 | R50,000 × 10% |
| Customs value | R55,000 | R50,000 + R5,000 |
| Customs duty (20%) | R11,000 | 20% × R55,000 |
| ATV | R66,000 | R55,000 + R11,000 |
| Import VAT (15% of ATV) | R9,900 | 15% × R66,000 |
| Total payable to SARS | R20,900 | Duty (R11,000) + VAT (R9,900) |
Try these figures with your own HS code and FOB value using the JLog Duty & Landed Cost Calculator.
Notice: the duty goes into the ATV calculation before VAT is applied, which means you pay VAT on top of the duty. The effective tax burden is not simply 20% + 15% = 35%. The combined rate is: duty + 15% × (customs value + duty) = 20% + 15% × (1 + 20%) = 20% + 18% = 38% of customs value.
The 10% Upliftment — Why It Exists
SARS adds 10% to the FOB value before calculating duty. The upliftment represents the cost of freight and insurance from the export port to the South African import port — costs that are not always itemised on an invoice for FOB-priced goods. SARS uses a flat 10% rather than requiring proof of the actual freight and insurance figure, because verifying freight charges on every entry would be impractical.
If your goods were priced CIF (Cost, Insurance and Freight), SARS may adjust the customs value calculation — the 10% uplift is applied to the FOB component only. In practice, most commercial imports use FOB pricing, so the 10% uplift is the standard addition.
Non-Rebated vs Rebated Duty — What Goes into the ATV
Not all duty paid counts toward the ATV for VAT purposes. Only non-rebated duty — duty that is actually payable, with no rebate or relief applied — is added to the customs value to form the ATV. If your goods qualify for a duty rebate (for example, certain raw materials imported under a rebate item in Schedule 4 of the Customs and Excise Act), the rebated portion is not included in the ATV. You still pay VAT, but on a lower base.
What Is Notional Input VAT?
Notional input VAT is a concept unique to South Africa’s VAT system that applies when a VAT-registered business acquires goods from a non-vendor (someone who is not VAT-registered). The acquiring business may, in certain circumstances, claim a notional VAT deduction equal to the VAT fraction (15/115) of the consideration paid — even though no VAT was separately charged. This is not the same as import VAT. Notional input VAT is a domestic supply-chain mechanism; import VAT is charged by SARS on goods entering South Africa. Do not confuse the two: they have different rules, different tax periods, and different documentation requirements.
Can VAT-Registered Businesses Claim Import VAT Back?
Yes. A VAT-registered vendor (a business registered for VAT with SARS) can claim import VAT paid to SARS as an input tax credit on its VAT return, provided the goods are used for making taxable supplies. The customs entry document (SAD500) and the SARS import VAT receipt serve as the documentary proof for the input tax claim. The credit is claimed in the VAT period in which the goods are cleared, not when the goods are used or sold.
Non-registered importers — individuals, businesses below the VAT registration threshold, or businesses making only exempt supplies — cannot claim the import VAT back. It is a permanent cost for them.
SARS’s Role in VAT Calculation
SARS calculates and collects import VAT as part of the customs clearance process, before the goods are released from the port or warehouse. The importer (or their clearing agent) pays SARS the duty and VAT as a single payment at clearance. SARS then issues a customs release, and the goods are authorised for delivery. There is no VAT invoice from SARS in the conventional sense — the SAD500 customs entry and the electronic SARS payment receipt serve as the VAT documentation.
Frequently Asked Questions About Customs VAT in South Africa
Is import VAT always 15%?
Yes. Import VAT in South Africa is 15%, the same as the standard domestic VAT rate. Zero-rated and exempt categories that apply to domestic supplies (e.g. basic food items) generally do not apply to imports — the VAT Act treats imports differently from domestic transactions for these categories. Certain goods may qualify for VAT relief at importation under specific Schedule items, but this is the exception rather than the rule. For most commercial imports, 15% applies to the full ATV.
Why does SARS use FOB value and not the invoice value plus freight?
SARS uses the FOB customs value as the base because it provides a consistent, verifiable starting point: the price of the goods at the point of export, before shipping and insurance costs. Adding a flat 10% uplift standardises the freight/insurance estimate without requiring importers to submit freight invoices for every entry. If you declare CIF (Cost, Insurance, Freight) pricing, SARS adjusts to extract the FOB element before applying the 10%.
What if the duty rate changes between order and delivery?
SARS applies the duty rate in force on the date the goods are presented to customs for clearance — not the order date or invoice date. If a Schedule 1 amendment increases the rate between when you ordered and when your goods arrive, you pay the higher rate. This is an inherent risk for importers on longer supply-chain cycles. It is most relevant in categories with known SARS tariff review processes (some textiles, steel products).
Do I pay VAT again when I sell imported goods locally?
If you are VAT-registered: you collect output VAT on your local selling price, claim back the import VAT as an input credit, and remit the net difference to SARS. The VAT is paid once in total — import VAT + output VAT on margin. If you are not VAT-registered: you paid import VAT at clearance and do not collect VAT on your local sales (you are below the threshold). There is no double-payment in the normal commercial case for registered vendors.
Can I avoid import VAT by splitting one shipment into smaller parts?
No. SARS treats related goods as a single consignment regardless of how they are split across physical shipments or parcels. Deliberately splitting shipments to avoid formal entry or to fall under a threshold is a customs offence. Each commercial consignment must be declared at its full customs value.
Calculate your VAT instantly: Use the JLog Duty & Landed Cost Calculator — enter your HS code and FOB value to see the full ATV breakdown. For a full clearance quote including freight and insurance, contact JLog.
Updated: August 2026. ATV formula and VAT rate sourced from the Value-Added Tax Act 89 of 1991 and the Customs and Excise Act 91 of 1964. Rates are subject to legislative amendment — verify before relying on any specific calculation.