Import duties on new MBP

I

InfernoZA

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Hi All

Just trying to figure out what the import duties would be on the new MBP if I had to import either from the US or the UK? SARS was their usual useless selfs, so thought I'd ask a better knowing crowd :)
 
It's the same as for any other PC hardware .

Invoice value (minus shipping) * 1.1 * 1.14

And the courier will probably slap on a small handling fee.
 
no duties on pc parts, so take cost x 1.154 for the vat, (import vat is calculated at this, dont ask why, just is) plus clearing fee from shipper, varies around R200
 
Customs duty value x 110% x 114%.

You must include customs duty before you calculate VAT but as far as I know there's no customs duty on PC components.

za1, why 1.154?
 
KalMaverick said:
Customs duty value x 110% x 114%.

You must include customs duty before you calculate VAT but as far as I know there's no customs duty on PC components.

za1, why 1.154?
Click to expand...

work it out.

customs add 10% to the declared value before calculating the VAT so if an item costs $50 the vat is calculated on a value of $55 which equals $7.70.
or just take $50 x 1.154 = $57.70 - your vat amount = $7.70
 
za1 said:
work it out.

customs add 10% to the declared value before calculating the VAT so if an item costs $50 the vat is calculated on a value of $55 which equals $7.70.
or just take $50 x 1.154 = $57.70 - your vat amount = $7.70
Click to expand...

Oh I see, so they don't actually charge you that 10%? They just use it to calculate the VAT?

I thought it was an extra expense on top of the custom duty and VAT.
 
And when there are duties it is 1.15 * the value * duty percentage.
 
noxibox said:
And when there are duties it is 1.15 * the value * duty percentage.
Click to expand...

So if the item is R100 and the import duties are say 5%, then it is "1.15 x R100 x 105% = R120.75?"

I would have worked it out:

R100 x 10% = R10
R100 x 5% = R5
(R100 + R10 + R5) x 14% = R16.1

So total would be R100 + R5 + R16.1 = R121.1 <--- Is this correct?

EDIT: Oh wait, did you mean?

And when there are duties it is 1.154 * the value * duty percentage.
Click to expand...

Using that I then get R121.17
 
noxibox said:
R122.04; R100 + R5.75 + R16.29
Click to expand...

Why you adding the R5.75 to the R100 and multiplying it by 110% for the VAT calculation? As far as I know you do not add the duties to that calculation (the 110% calc).

(R100 + R5.75) x 110% x 14% = R16.29
(R100 x 110% + R5.75 ) x 14% = R16.21
 
Last edited:
KalMaverick said:
Why you adding the R5.75 to the R100 and multiplying it by 110% for the VAT calculation? As far as I know you do not add the duties to that calculation (the 110% calc).
Click to expand...
Yes, you do. You can do either VAT or duties first, then you must add that to the value of the item before calculating the second one.
 
Interesting, the reason I ask if because my notes say otherwise and when doing an example on this website. Link

The answer is not the same. R1000 item with 45% Duties.

(R1000 + R450) x 110% x 14% = R223.3
(R1000 x 110% + R450) x 14% = R217

(Ignoring the 15% for now).

Unless I'm overlooking something.
 
Customs also do some rounding when they do their calculations.

Customs Duty
Section 13(2)(a) of the VAT Act sets the value to be placed on the importation of goods into South Africa. The value is deemed to be: the value of goods for customs duty purposes; plus any duty the Customs and Excise Act levies on the importation; plus 10% of that value.
Click to expand...

They may well have dropped the 15% for calculating duty, but I haven't really checked recently and since you don't necessarily know for sure what the deemed custom value will be until it arrives it does no harm to assume they continue to calculate it that way.
 
I also looked at the act earlier and from it's wording your way seems correct. It makes me wonder why we were shown differently.

I'll go ask my lecturer why we are taught one way and the act seems to say something different.
 
So I spoke to my tax lecturer, I was correct.

(R100 x 110% + R5.75 ) x 14% = R16.21
Click to expand...

You do not add the customs duty to the value and then times by 10%. You add the 10% and then the customs duty. ie You will get a lower VAT amount.
 
I was asked by a very nice member to just add my two cents here and I shall happily do so.Please be advised that the question in this thread made no number apparent to what I could see.I have read through alot of the theories...and putting numbers to answers you will always be caught out far heavier than if you theoretically do so.

Anyway lets clear up the issue and we will do it using SARS as the horses mouth shall we.Anything I reference please feel free to look up for instance exmptions on certain imports,types and prices on imports and the relevent taxes thereon.Ready? Here goes

What is Customs Duty?
Customs duty

Customs duty is levied on imported goods and is usually calculated as a percentage on the value of the goods (set in the schedules to the Customs and Excise Act). However meat, fish, tea, certain textile products and certain firearms attract rates of duty calculated either as a percentage of the value or as cents per unit (for example, per kilogram or metre)

But what about VAT?

Value-Added Tax

Section 7(1)(b) of the Value-Added Tax Act 89 of 1991 levies VAT at a rate of 14% on the importation of goods into South Africa from export countries - including Botswana, Lesotho, Namibia and Swaziland. However, certain goods imported into South Africa are – under Section 13(3) read with Schedule 1 - exempt from VAT on importation.

How does this relate to me importing goods?

Section 13(2)(a) of the VAT Act sets the value to be placed on the importation of goods into South Africa. The value is deemed to be: the value of goods for customs duty purposes; plus any duty the Customs and Excise Act levies on the importation; plus 10% of that value.

However, Section 13(2)(b) provides that the value is not increased by the factor of 10% if the goods have their origin in Botswana, Lesotho, Namibia or Swaziland.

Hope this all helps

Good luck
 
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