Excise Duties and Levies

WHAT'S NEW IN EXCISE

  • 12 April 2016 - Taxation proposals 2017 for Quarterly SOS Accounts (DA 260) and Returns (EXD 01) for Wine, Vermouth, Other Fermented Beverages and Spirits
    All licensees are required to submit an account for the period 1 to 22 February 2017 (first excise account for the quarter) and include in this account all completed transactions (i.e. entered / invoiced AND delivered / removed from the licensed premises) up to the actual time of tabling of the mentioned taxation proposals.

    All transactions after the tabling of the taxation proposals shall be included in a second excise account for the quarter (22 February 2017 (14h32) to 28 February 2017) which must indicate all transactions until the end of the first quarter accounting period (January to March).

    Transactions for the second part of the first quarter may not be added to the second quarter (April to June) accounting period (see rule 19A.08 of the Customs and Excise Act, 1964).

    Both accounts for the first quarter must be submitted as per the normal agreed submission dates for the first quarter (January to March) accounting period.

  • 8 December 2016 - Excise submission and payments dates for 2017/18.

  • 6 December 2016 - Application for the licensing of a Manufacturing Warehouse (VM) - Tyre Levy

    In terms of the announcement made by the Minister of Finance during his 2015 and 2016 budget speeches, SARS will be responsible for the collection of environmental levy on tyres that will come into effect as at 01 February 2017.

    You are therefore required to license in terms of section 59A, read with section 60 of the Customs & Excise Act, No. 91 of 1964, as a manufacturing warehouse (VM).

We therefore kindly request that you urgently submit your DA 185 application form together with the supporting documents as indicated on page 3 of the form to your nearest Customs and Excise branch office before 31 December 2016. See the info sent to the Tyre Levy Manufacturers.

WHAT IS IT?

Excise duties and levies are imposed mostly on high-volume daily consumable products (e.g. petroleum and alcohol and tobacco products) as well as certain non-essential or luxury items (e.g. electronic equipment and cosmetics).
 
The primary function of these duties and levies is to ensure a constant stream of revenue for the State, with a secondary function of discouraging consumption of certain harmful products; i.e. harmful to human health or to the environment.

In addition to duties and levies, we also have the Diesel Refund System for qualifying entities.
 
The revenue generated by these duties and levies amount to approximately ten per cent of the total revenue received by SARS. 

WHO IS IT FOR?

Excise Duties are payable by manufacturers of the following products and are levied throughout the Southern African Customs Union (SACU), consisting of the Republic of South Africa, the Republic of Botswana, the Kingdom of Lesotho, the Republic of Namibia and the Kingdom of Swaziland:
Excise Levies are/may be levied separately and uniquely on different products by each individual SACU member state; in South Africa currently on the following products: 

 

For a complete list of Excise documents, scroll down to 'Top Publications' and 'Top Forms' or click here.

WHAT STEPS MUST I TAKE?

Relevant entities in the RSA must license with SARS Excise before they start to manufacture or otherwise deal in any of these products on which the applicable Excise Duty and / or Levy has not yet been paid. 

WHEN AND HOW SHOULD IT BE PAID?

These duties and levies are self-assessed by the client per periodic Excise return and, depending on the product, paid to SARS on either a monthly or quarterly basis.
Last Updated: 12/04/2017 4:06 PM     print this page
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 Top FAQs

What is Duty at Source (DAS)?
DAS is a system of assessing Excise duty and accounting, for excisable products at source (i.e. as close as possible to the point of manufacture of the specific product).

Which excisable product(s) are duty-assessed at source (Duty At Source - DAS) and what are the payment periods?
1)Spirits Industry - Primary Manufacturing (VMP) within 30 days after the end of the accounting month. - Secondary Manufacturing (VMS) within 110/130 days after the end of the accounting month.

Which excisable product(s) are duty-assessed based on the time of sale/consumption in the local market and what are the payment periods?
Wine and Other Fermented Beverages - Special Manufacturing (SVM) - Within 30 days after the end of the accounting month - January to July.

Which form is used to apply for Licensing and Registration by Excise clients and where can it be obtained?
Form DA185 and its Schedules can be obtained from the local Controller of Customs and Excise, or from the SARS website (www.sars.gov.za).

Will I still need to complete a DA185 with associated annexures to register?
Yes. The existing forms will still be needed and submitted. Top Tip: This is for Customs and Excise only.