Online Shopping From Overseas: Import Duties Explained
Ordering from Amazon, Shein, AliExpress, or other overseas retailers? You may owe import duties and VAT when your package arrives in South Africa. Here is how it works.
Key Takeaways
- Packages under R500 are exempt from customs duty (but not always VAT)
- Packages between R500 and R50,000 attract a flat 20% duty plus 15% VAT
- SARS has been increasing enforcement on online imports
- The sender's declared value determines the duty
- Using a freight forwarder can help manage costs
The de minimis threshold
Packages with a customs value under R500 are generally exempt from customs duty. However, VAT may still apply. This threshold is much lower than in many other countries.
- Under R500: generally duty-free
- VAT may still apply on all imports
- Threshold is per shipment, not per item
- SARS is increasing enforcement
- Commercial quantities always attract duty regardless of value
How duty is calculated on online purchases
For personal imports between R500 and R50,000, SARS applies a simplified flat duty rate of 20% plus 15% VAT. This is calculated on the customs value (purchase price + shipping + insurance).
- Flat 20% duty on customs value
- Plus 15% VAT on (customs value + duty)
- Customs value = purchase price + shipping + insurance
- Example: R1,000 item = R200 duty + R180 VAT = R380 total
- Courier companies often add their own clearance fees
How to reduce import costs
There are legitimate ways to reduce your import costs. Splitting orders to stay under the threshold, using a freight forwarder, or buying from SA retailers that import in bulk can all save money.
- Stay under the R500 threshold where possible
- Use a freight forwarder for regular imports
- Consider total landed cost before ordering
- SA retailers often include duty in their prices
- Check if the item is available locally first
Ready to see your own numbers?
Use the Customs Duty Calculator