SARS: New rules re international online purchases

SARS: New rules re international online purchases

• 20 June 2024
• SARS Issues
• South African Accounting Academy

The update from SARS comes just after Amazon officially launched its online marketplace in South Africa. While the group now has local operations it does not necessarily carry the same stock as on its UK or US stores.

SARS has confirmed that you don’t have to register as an importer if you meet certain conditions.

Personal goods can be cleared with Customs under the generic code 70707070. However, you must meet the following conditions:

• The allowance has changed from not more than R50 000 (only 3 transactions) to not more than R150 000 (one or more);
• You are only allowed to import goods for home consumption or personal use, not for resale or any other business;
• You must be located in South Africa;
• Your identity number/ Passport number or taxpayer reference number must be entered in the field provided in the declaration form.

Should the purchase falls outside these limitations, you will have to register and obtain an importer or exporter code.

Note that the above clearance process has been in place for a number of years, and it’s only the amount and number of transactions that have changed in April 2024. This ruling is not related to the possibility of adding a tax or duty on parcels of low value e.g. buying clothing from overseas companies as it is merely a discussion at this point and not official.

Click here to access the information webpage:

https://www.sars.gov.za/latest-news/do-i-need-to-register-as-an-importer-if-i-buy-personal-goods-from-abroad-e-g-from-amazon/

Relevance to Auditors, Independent Reviewers & Accountants:

• The Income Tax, VAT and Customs & Excise Acts are pieces of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• As an auditor, independent reviewer and accountant, you need to consider INFO.
• Tax practitioners play a critical role in bridging the gap between taxpayers and SARS. As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for companies and tax practitioners to keep abreast of such changes in so that companies continue to meet their tax obligations.
• As a taxpayer, you also need to comply with relevant conditions when buying personal goods from international online retailers.

Relevance to Your Clients:

• Taxpayers have a duty to comply with the Income Tax, VAT and Customs & Excise Acts, otherwise they could face fines and penalties.
• As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for companies to continue to meet their tax obligations.
• As a taxpayer, your clients also need to comply with relevant conditions when buying personal goods from international online retailers.

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