What Is Import Tax Or Import Duty?
In the field of economics, a duty is a kind of targeted tax imposed by a state or other political body. It frequently relates to customs, in which case it is also referred to as tariffs or dues. The phrase is frequently used to refer to a tax on specific items bought abroad.
Instead than being a direct imposition on people or businesses like income or property taxes, a duty is imposed on specified goods, financial transactions, estates, etc. Customs duty, excise duty, stamp duty, estate duty, and gift duty are a few examples.
Customs Duty Or Tax
The indirect tax imposed on the import or export of commodities in global trade is known as a customs duty or payable. A duty is a type of consumption tax in economics. Import duties and export duties are terms used to describe taxes imposed on different types of goods.
How Much Taxes Is Imposed On Imported Goods?
Imported commodities are subject to three different types of duties:
- Duties in customs (including additional ad valorem duties on certain luxury or non-essential items)
- Duties against dumping and countervailing
- VAT (which is also collected on goods imported and cleared for home consumption).
Countervailing And Anti-Dumping Duties
These duties are imposed pertaining to products deemed to be “dumped” in South Africa; and on imported items subject to subsidies.
The tariff imposed will depend on the outcome of investigations into pricing and export incentives for certain items in the nation of origin. These fees are assessed either as a fixed fee or on an ad valorem basis (as a proportion of the worth of the products) (as cents per unit). The following major factors determine the type and amount of duty levied on a product:
- The items’ market value (the customs value)
- The amount or volume of the items
- The commodities’ tariff categorization (the tariff heading).
How Much Is Import Tax In South Africa
In South Africa, the current VAT rate is 15%. It is necessary to first ascertain the ATV (added tax value) before calculating VAT on imported items. This is accomplished by multiplying [(Customs Value + 10% thereof) by (any non-rebated duties imposed on the goods)] by 15% to obtain [ATV] by 15% to obtain [VAT payable].
When products are imported from a nation outside the Customs Union, the 10% markup on the customs value is applied. Therefore, the 10% will not be applied to the computation if the items are from one of the BLNS nations (Botswana, Lesotho, Namibia, or Swaziland).
The same rules apply when items are exported to any BLNS country (no mark-up on the customs value to determine ATV).
