Personal Online Shopping and SARS Import Rules

The South African Revenue Service (SARS) has recently updated its guidelines for individuals purchasing goods from international online retailers such as Amazon. This update is particularly timely as Amazon has just launched its South African operations. However, it's important to note that the local Amazon store may not have the same inventory as its US or UK counterparts.

Changed Rules from 1 July 2024

From 1 July 2024, significant changes will be implemented for the import duties on clothing items in South Africa:

• Uniform Duty Rates: All imported clothing items, regardless of value, will be subject to the same import duties. This marks a shift from the previous system where items valued at less than R500 had lower duties.

• Standardization of Duties: Items under R500 will now attract the same 45% import duty and applicable value-added tax (VAT) as items above this value threshold.

• Crackdown on Loopholes: The update aims to address and close loopholes previously exploited by companies like Shein and Temu, who had been breaking up large orders into smaller parcels to benefit from lower duty rates on shipments under R500.

When Do You Need to Register as an Importer?

Here's what you need to know as per the Legal LSec CE RA Customs and Excise Rules 1995 as amended as published on 12 April 2024 on the Rule Amendments webpage:

• Registration as an Importer Not Required: You do not need to register as an importer if your purchases are within certain limits. Previously, the allowance was up to R50,000 for no more than three transactions per year. This has now increased to R150,000, and the limit on the number of transactions has been removed.

• Conditions for Using the Generic Code 70707070:

• Goods must be for personal use or home consumption only (not for resale or business use).

• You must be located within South Africa.

• Your identity number, passport number, or taxpayer reference number must be entered on the declaration form.

• When You Need to Register: If your purchases exceed these limitations, you will need to register with SARS and obtain an importer or exporter code.

• No Immediate Changes in Taxes for Low-Value Parcels: Although there is ongoing discussion about possibly taxing low-value international parcels, no new taxes or duties have been officially implemented as of now.