AD VALOREM PRODUCTS

What is it?

Ad Valorem Products include, amongst others, Motor Vehicles, Electronic Equipment, Cosmetics, Perfumeries and other products generally regarded as “luxury items” and are subjected to the payment of Ad Valorem Excise Duty if used within the Southern African Customs Union (SACU).

Who is it for?

Ad Valorem Excise Duty on Ad Valorem products is payable by manufacturers of these products.

What steps must I take?

Relevant entities in the RSA must license with SARS Excise before they start to manufacture or otherwise deal in Ad Valorem Products on which the applicable Ad Valorem Excise Duty has not yet been paid.

When and How Should it be Paid? 

The applicable Ad Valorem Excise Duty on Ad Valorem Products is self-assessed by licensed manufacturers per quarterly Excise return and paid to SARS.