Three imports and customs rules your company must comply with
While exports can be zero-rated, imports are treated differently under varying circumstances. That's why it's important that you know when your company will be expected to pay Vat on goods you import into the country. Read on to discover three imports and customs rules your company must apply to ensure you're getting Vat on imports right.
'Vat is a tax on the domestic consumption of goods and services, local sales and imports are taxed at the 14% standard rate and exports are zero-rated,' Practical Vat Loose Leaf Service. This principle is common to Vat systems throughout the world
That's why it's important you know when your company will be expected to pay Vat on goods you import into the country.
To get this right, your company must comply with the following imports and customs rules.
Use these three imports and customs rules to ensure your company complies
Imports must be declared. All goods entering South Africa must be declared on the prescribed bill of entry. This could be the 'DA500 Bill of Entry – Direct or the CCA1 Declaration of Goods Removed within the Southern African Common Customs Area form for goods imported from Botswana, Lesotho, Namibia, or Swaziland,' says the Loose Leaf or it could be the SAD500 Customs Declaration Form. The forms are available on the SARS website.
Make use of simplified declaration processes. Certain goods qualify for a simplified declaration process using the DA306 form. These include: Human remains, goods that in SARS' opinion are of no commercial value and goods of a customs value of R500 or less. Remember, goods include animals and currency.
Goods must be declared within seven days. Your company must declare imported goods within seven days of the deemed date of importation. Failure to do so will result in the 10% late penalty and interest being levied by customs.
By understanding imports and customs rules you can ensure your company complies with the law so you can get your Vat on imports right.