Shopping in the modern age has seemingly never been so easy – with consumers being able to fill their online baskets in just a couple of clicks. <\/p>\n\n\n\n
However, its convenience is “balanced out by the hidden costs” of duty fees, taxes and transport costs that are often overlooked until it is too late, says a senior associate at Shepstone and Wylie, Taryn Hunkin.<\/p>\n\n\n\n
Whilst additional courier or transport charges are often incurred for purchases from a South African supplier, these costs are a (relative) drop in the ocean in comparison to items purchased from overseas. <\/p>\n\n\n\n
South Africans often vie for overseas products, as the item itself is cheaper. Hunkin says that whilst this may be true, customers often do not anticipate the amount they will have to pay in (potential) transport costs, customs duty fees and Value Added Tax (VAT), “the amount of which may very well be higher than the cost of the item purchased” itself. <\/p>\n\n\n\n
To avoid the surprise ‘duty’ call from the courier, Huinkin suggests that consumers do research before making an overseas purchase in order to try establish what the applicable tariff is. The SARS website<\/a> has a link to the tariff book, which contains all relevant tariff codes and applicable duty rates.<\/p>\n\n\n\n Another important piece of information for online South African consumers to note is that customs VAT is not calculated in the same way as normal VAT is calculated, therefor is not a straight 15% of the purchase price – greatly exacerbating its costs. <\/p>\n\n\n\n To calculate the VAT payable on imported goods, customers have to take the declared value of their parcel and add 10% to that value. Then, add the amount of duty payable to get the Added Tax Value (ATV). Finally, calculate the VAT amount based on the ATV value.<\/p>\n\n\n\n “For example, if you import a dress and you pay R200.00 for it, if the rate of duty on your dress is 45%, your ATV would be R200 + R20 + R90 = R310.00. The VAT amount payable to SARS would equate to R46.50 bringing the total amount payable to SARS to R136.50, and the actual cost of the dress to R336.50, excluding the courier charges.” explained Huinkin. <\/p>\n\n\n\n Those who purchase items from overseas (importers as SARS defines them) also need to be wary of the terms of the Customs and Excise Act<\/a>. This act stipulates that if consumers bring goods in that are over R150,000 in one calander year (regardless if the amount was made in one or over several purchases), they have to register with SARS as an importer. <\/p>\n\n\n\n Non-compliance with SARS’ (who keep track of the value of individual’s imports) registration requirements may result in penalties, storage fees, and the seizure of goods. <\/p>\n\n\n\n “As they say, nothing in life is certain except for death and taxes, so be sure to do thorough research before purchasing anything online from an overseas store. That overseas purchase may not be so much cheaper than the local alternative after all,” concluded Huikin. <\/p>\n\n\n\n
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