How is VAT calculated on imported goods?


VAT is presently levied at the standard rate of 15%. To calculate VAT on imported goods, the Added Tax Value (ATV) needs to be determined first. This is done as follows :

(Customs Rand Value (On date of exchange) + 10% thereof + (any non-rebated duties levied on the goods) =  [ATV] x 15% ( VAT payable )

The 10% mark-up on the customs value in this calculation is applicable when goods are imported from a country outside the Customs Union. For goods from any of the BLNS countries (Botswana, Lesotho, Namibia or Swaziland), the 10% will not be added to the calculation.