SARS Import Duty and VAT for Dropshippers, Explained Simply
Key takeaways
- Imported goods into South Africa attract import duty (by tariff category) and 15% VAT.
- If duty isn't paid upfront, the courier or post office may ask your customer to pay.
- DDP delivery pays these costs before the parcel arrives.
- Build duty and VAT into your landed price so your margin stays real.
What SARS charges on imported parcels
When goods enter South Africa, SARS can charge import duty based on the product's tariff category, plus 15% VAT. Rates vary by product type, which is why two items at the same supplier price can land at very different rand costs.
| Cost | What it is | Who pays with DDP |
|---|---|---|
| Product cost | Supplier price converted to ZAR | Seller |
| Freight | Air freight and local courier | Seller |
| Import duty | Set by tariff category | Paid upfront, before delivery |
| VAT | 15% South African VAT | Paid upfront, before delivery |
Why customers refuse parcels
A buyer who already paid at checkout and is then asked for extra fees at the door often refuses the parcel. That leads to refunds, lost stock and bad reviews. Paying duty and VAT upfront avoids the problem entirely.
See landed ZAR prices with duty and VAT included
Frequently asked questions
- How much VAT is charged on imports into South Africa?
- South African VAT is 15%, charged on imported goods in addition to any import duty.
- Does every product have the same import duty?
- No. Duty depends on the product's tariff category. Clothing and footwear are often higher than accessories.