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. 

HOW DO I SUBMIT MY AD VALOREM EXCISE DUTY ACCOUNT?

All licensees must be registered for eFiling as the submission and payment of accounts can only be made via eFiling. The following process should be followed:
  • Register on eFiling;
  • Once registered, log on;
  • Click on the Request Declaration button;
  • Insert the warehouse number;
  • Click on Continue and the form will be generated
  • For more information you can access the eFiling user manual on the website.  
If clients are not able to access the eFiling service, they must contact the nearest SARS Excise Branch Office for assistance. 

WHAT ARE THE ACCOUNTING PERIODS FOR AD VALOREM EXCISE DUTY ACCOUNTS?

The accounting periods for the Ad Valorem Excise Duty accounts are quarterly:
  • 1 January - 31 March
  • 1 April - 30 June
  • 1 July- 30 September
  • 1 October - 31 December

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 account and paid to SARS.
 
Last Updated: 29/09/2017 2:39 PM     print this page
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 Top FAQs

How is Ad Valorem or Schedule 1 part 2B value determined/calculated?
The value for the purposes of determining the Ad Valorem Customs duty on such imported goods, equils, rounded off in terms of Section 73 of the Act:

On what products is Ad Valorem excise duty levied?
On certain selected locally manufactured goods. These goods are described in Part 2B of Schedule 1 of the Customs and Excise Act, which is amended from time to time.

What is the relationship between Ad Valorem and VAT?
VAT will not form part of the nett invoice price for the purpose of calculating the Ad Valorem duty due. In terms of Section 7(3) of the VAT Act, Act no. 89 of 1991,

When and how is Ad Valorem excise duty payable?
Rule 36A.04 applies. Every manufacturer of excisable goods of Section B of part 2 of Schedule No. 1 and every owner of such excisable goods, manufactured for him partly or wholly from materials owned by such owner,