Carbon Tax

 What’s new?

• 2 July 2021 – The annual carbon tax accounts and payments for the 2020 tax period, which started on 1 January 2020 and ended on 31 December 2020, are now due. The Excise declaration (EXD 180) account, with its relevant annexures and carbon tax payments, can be submitted on eFiling from 1 July 2021. Please note, the closing date for submissions is 29 July 2021 at 15:00. For the requirements and more information, see our carbon tax communique.
  
  
• 4 February 2021 – Frequently Asked Questions – Carbon Tax​​

• 29 October 2020 – Carbon Tax submissions closed today 29 October 2020 at 15:00.
  
  
• 21 September 2020 – Submissions for Carbon Tax opens 1 October 2020:
  Submissions for the Carbon Tax Environmental Levy Account (DA 180) together with payments of any carbon tax liability opens on 1 October and closes on 29 October 2020 at 15:00 for the 2019 tax period. The completed  DA 180, annexures and supporting documents must be submitted via the SARS eFiling platform through the ‘Excise Levies & Duties’.
  
  
• 27 August 2020 – Carbon Tax Roadshow Presentation
  
  
• 7 August 2020 – Tariff Amendments for Carbon Tax:
  The tariff amendment notices, scheduled for publication in the Government Gazette, relate to the amendments to–

• Part 1 of Schedule No. 1, by the insertion of tariff subheadings 9903.00.10, 9903.00.30 and 9903.00.50 to give effect to the Budget proposal, to implement the carbon emissions tax as announced by the Minister of Finance on 20 February 2019.  With retrospective effect from 1 June 2019
• Part 3F of Schedule No. 1, by the insertion of Notes as well as items under heading 157.00/9903.00 to give effect to the Budget proposal, to implement the carbon emissions tax as announced by the Minister of Finance on 20 February 2019.  With retrospective effect from 1 June 2019
• Part 3F of Schedule No. 1, by the substitution of items under heading 157.00/9903.00 to increase the rate of environmental levy on carbon emissions from R120/t CO2 emissions to R127/t CO2 emissions. With retrospective effect from 1 January 2020
• Part 6 of Schedule No. 6, by the insertion of Notes and various items to give effect to the Budget proposal, to implement the carbon emissions tax as announced by the Minister of Finance on 20 February 2019.  With retrospective effect from 1 June 2019
• Schedule No. 8, by the insertion of item 805.26 to give effect to the Budget proposal, to implement the carbon emissions tax as announced by the Minister of Finance on 20 February 2019.  With retrospective effect from 1 June 2019
• Part 3 of Schedule No. 2, in order to give notice that the safeguard duties imposed through Notice Nos. R.829, R.830 and R.831 of Government Gazette No. 41038 dated 11 August 2017 are hereby extended up to and including 10 August 2021 at the current rate of 8%.

• 20 July 2020 – Carbon Tax Registration and Licensing communication to stakeholders
  
  The restrictions on licensing and registration have been lifted in line with the President’s address to the nation on 21 April 2020. Please direct all queries to the nearest Customs Branch Office for registration/licensing matters and to the SARS Contact Centre  0800 00 7277 for all other queries. 
  
  
• 3 July 2020 – Notice R.754

DAR199 – Item 202.00 of the Schedule to the rules is hereby amended by the insertion of the following forms:

• Notice R.754
  
  • DA 180 – Environmental Levy Account for Carbon Tax
  • DA 180.01A.1 – Fuel Combustion (Stationary)
  • DA 180.01A.2 – Fuel Combustion (Non-Stationary)
  • DA 180.01B.1 – Fugitive (Oil and Natural Gas)
  • DA 180.01B.2 – Fugitive (Coal Mining and Handling)
  • DA 180.01C – Industrial Process
  • DA 180.02 – Carbon Tax Allowances 
• Completion notes to DA 180 carbon tax account.

• 23 April 2020 – Tax Relief measures: Three-month deferral for filing and first payment of carbon tax

In line with the economic stimulus package announced by President Cyril Ramaphosa, the filing requirement and the first carbon tax payment which was due by 31 July 2020 will be delayed to 31 October 2020.

• December 2019 – Rule Amendment – Amendment to rules published in Government Notice R.1874 of 8 December 1995, relating to the environmental levy in respect of carbon tax, and substitution of forms:
  • Notice R.1700 – Insertion of rules 54FD
    • DA 185 – Registration and Licensing of Customs and Excise Clients
    • DA 185.4B2 – Licensing client type 4B2 – Manufacturing warehouse
• December 2019 – Media statement – Gazetting of the Carbon Offsets Regulations in terms of the Carbon Tax Act
• December 2019 – Notice 1556 – Regulations on carbon offsets under section 19 of the Carbon Tax Act
• December 2019 – Summary – Draft Trade Exposure and GHG Emissions Intensity Benchmark Regulations
• December 2019 – Draft Regulations – Trade Exposure Allowance
• December 2019 – Draft Regulations – GHG Emissions Intensity Benchmarks

What is Carbon Tax (CBT)?

The CBT is a new tax in response to climate change, which is aimed at reducing greenhouse gas (GHG) emissions in a sustainable, cost effective and affordable manner.   Carbon Tax gives effect to the polluter-pays-principle and helps to ensure that firms and consumers take the negative adverse costs (externalities) of climate change into account in their future production, consumption and investment decisions.  

When was CBT implemented?

The Carbon Tax Act of 2019 came into effect on 1 June 2019. It will be administered and collected by SARS.   The CBT is assessed, collected and enforced as an environmental levy in terms of the Customs and Excise Act, 1964, read with the relevant provisions of the Carbon Tax Act, 2019.  

Who is CBT for?

The CBT is imposed on entities in the country that operate emissions generation facilities at a combined installed capacity equal to or above the carbon tax threshold.  

Which goods are subject to CBT?

The carbon dioxide equivalent of greenhouse gas emissions as defined in the Carbon Tax Act, 2019, are subject to CBT.

How are CBT emissions determined?

The emissions that are subject to CBT are determined in accordance with either an approved reporting methodology of the Department of Environment, Forestry and Fisheries (DEFF), or the prescribed formulas in terms of the Carbon Tax Act, 2019.  

How is the CBT liability calculated?

The first phase has a carbon tax rate of R120 per ton of carbon dioxide equivalent emissions. This rate will increase annually by inflation plus 2 per cent until 2022, and annually by inflation thereafter.   Significant industry-specific tax-free emissions allowances ranging from 60 per cent to 95 per cent will result in a modest nett carbon tax rate ranging from R6 to R48 per ton of carbon dioxide equivalent emissions to provide current emitters time to transition their operations to cleaner technologies through investments in energy efficiency, renewables, and other low-carbon measures.  

What steps should I take to comply?

Persons conducting an activity or activities in South Africa resulting in greenhouse gas emissions above the threshold must license each of their facilities must license each of their emissions generation facilities with SARS as customs and excise manufacturing warehouses for environmental levy purposes.  

How do I submit my CBT account?

CBT has an annual tax and accounting period. Every licensee must submit an annual CBT environmental levy account in respect of each licenced facility of that licensee in the month of July of the year following the tax period.   All licensees must be registered for eFiling as the submission and payment of CBT accounts should 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.

If clients are not able to access the eFiling service, they must contact the nearest SARS Excise Branch Office for assistance.  

Need help?

If you have any questions, you may:

• Phone the SARS Contact Centre on 0800 00 7277; or
• Visit your nearest SARS Excise branch.