VAT on Imports into South Africa

Import VAT is separate from import duty — it applies even on goods that attract a 0% duty rate. Understanding the ATV formula is the key to calculating your real landed cost before a shipment arrives. This page explains the formula, shows two worked examples at opposite ends of the duty scale, and covers when and how VAT-registered importers can reclaim import VAT as input tax.

For the full duty-and-VAT method across all products, see how import duties are calculated.

The 15% Rate and the ATV Formula

SARS levies import VAT at a flat 15% rate on the Added Tax Value (ATV), not on the invoice price alone. The ATV builds in two components on top of the FOB customs value:

1. A mandatory 10% upliftment — applied to the FOB value to account for notional international freight and insurance costs not already included in the declared customs value
2. Import duty — the amount calculated on the FOB value at the applicable duty rate

Worked Example 1 — Clothing from China (45% duty)

Worked Example 2 — Laptop from the USA (0% duty)

Claiming Import VAT Back as Input Tax

If you are a VAT-registered importer in South Africa, you can claim the import VAT you paid as an input tax credit on your next VAT return — provided the goods are used to make taxable supplies in your business. This makes import VAT effectively cost-neutral for most VAT-registered businesses.

To support an input tax claim you need:

• The original SAD 500 customs declaration (or equivalent SARS entry document)
• Proof of payment of the import VAT (the entry stamp or SARS payment receipt)
• A valid commercial invoice showing the transaction value

The claim is submitted in the standard VAT 201 return in the period in which the goods were imported and cleared. Consult your tax practitioner if the goods serve mixed purposes (taxable and exempt supplies) as the input tax credit may need to be apportioned.

VAT on Low-Value Parcels — The De Minimis Position

South Africa does not maintain a meaningful VAT de minimis exemption for courier or postal imports. Historically, very low-value parcels sometimes slipped through without formal assessment, but since changes to SARS’s approach to e-commerce imports, all parcels are in principle subject to import duty and VAT assessment regardless of value. There is no declared formal threshold below which VAT is waived for online shopping deliveries.

In practice, SARS applies a simplified clearance process for low-value personal parcels (typically processed by courier companies under a simplified procedure), but this does not eliminate the VAT obligation — it just determines the administrative route. Your courier company advances the VAT to SARS and collects it from you.

VAT on Gifts Sent from Abroad

There is no general VAT exemption for gifts imported into South Africa by courier or post. A parcel declared as a gift is assessed in the same way as any other commercial import — VAT at 15% on the ATV applies to the declared value of the contents.

The only duty-free and VAT-free allowance that exists for personal imports is the R5,000 unaccompanied personal allowance available to returning South African travellers bringing goods through the Green Channel at a SARS port of entry — and even this is a duty/VAT relief, not an unconditional exemption. It applies to the traveller’s personal baggage, not to courier or postal shipments.

Zero-rated and VAT-exempt imports

Most imports attract 15% VAT, but a few categories get relief. Note that zero duty does not automatically mean zero VAT — always check both the tariff rate and the VAT schedule for your specific HS code.

• Printed books (heading 4901) — zero-rated for both duty and VAT under section 11(1)(o) of the VAT Act. This is the only common import category with a dual zero exemption.
• Basic foodstuffs — certain zero-rated foods under Schedule 2 of the VAT Act (brown bread, maize meal, milk, eggs and similar) may be zero-rated on import, depending on the HS code.
• Agricultural inputs — some farming inputs and equipment attract 0% duty and may qualify for VAT relief under specific Schedule 4 rebate items.

VAT when you sell into South Africa from abroad

If you are a foreign seller shipping into South Africa, two points matter for your margin. First, if you are not a registered South African VAT vendor you generally cannot reclaim the import VAT — it becomes a real cost that must be priced into your retail price, not a credit. Second, the cheapest way to sell into South Africa is rarely to ship each order across the border and pay customs on every parcel; it is usually to import in bulk, clear once, hold stock locally and fulfil domestic orders. See our full guide to selling into South Africa and the importer-of-record route.

Frequently Asked Questions

How is import VAT calculated in South Africa?

Import VAT = 15% of the Added Tax Value (ATV). ATV = (FOB customs value × 1.10) + import duty. So on a R10,000 FOB shipment with 0% duty, ATV = R11,000 and VAT = R1,650. On the same shipment with 45% duty, ATV = R15,500 and VAT = R2,325.

Can I claim import VAT back?

Yes, if you are VAT-registered in South Africa and the goods are used to make taxable supplies. You claim the import VAT as an input tax credit on your VAT 201 return for the period in which the goods were cleared. You need the SAD 500 entry document and proof of payment to support the claim.

Is there VAT on gifts sent from overseas?

Yes. SARS does not provide a general VAT exemption for gifts arriving by courier or post. The parcel is assessed at 15% VAT on its ATV in the same way as any other imported goods. The only exception is the R5,000 personal duty-free allowance for travellers physically carrying goods through a port of entry — this does not apply to courier shipments.