What’s New at SARS

4 April 2025 – Customs and Excise Act, 1964: Publication details for tariff amendments notices R6087, R6088, R6089 and R6090, as published in Government Gazette 52448 of 4 April 2025, are now available.

3 April 2025 – Traders eligible to apply for Authorised Economic Operator (AEO) status must be registered or licensed for a Customs activity which include importers, exporters, certified customs brokers, bonded area operators, bonded transportation companies, forwarders and shipping companies amongst others. Part of the process is to do the assessment, follow these easy steps:

Step 1: Register, nominate, book the assessment following the process SC-CF-37 – Sufficient Knowledge Competency Assessment  for AEO – External Guide

Step 2: Assessment Preparation – The External Policies only, found in the Related Documents section hereunder, serve as study material.

Step 3: Watch the video on our SARS TV channel: AEO Customs Sufficient Knowledge

Step 4: Complete the assessment.

For more information, see the AEO webpage.

3 April 2025 — The South African Revenue Service (SARS), together with the Department of Home Affairs (DHA), Border Management Authority (BMA), and Government Printing Works (GPW), took a giant step today to foster stronger and more integrated collaboration by signing cooperative agreement on modernisation and digitisation. A direct agreement was undertaken between SARS and DHA, which created a broad framework of collaboration between the parties.

These agreements are in line with the Digital Transformation of Government Roadmap, which the Cabinet approved on 26 March 2025. This is an important milestone which gives expression to the whole-of-government approach to deal with new and evolving challenges in digital identification and consequent fraud detection.

The first agreement was signed between the SARS Commissioner and the Director-General of DHA. This agreement revives the previous Direct Master Agreement, which has been the bedrock of the long-standing relationship between the parties, which began in 2010. SARS has played an important role to assist DHA to develop its own sophisticated IT systems. Today’s agreement will deepen collaboration on digital platforms to improve services and enhance data.

The second agreement was a multi-party memorandum of understanding between the DHA, SARS, BMA, and GPW. This represents a step forward to create the governance framework to enable, strengthen, and oversee the evolving strategic partnership between the signatories. SARS and the BMA have already been working toward greater alignment and closer collaboration. This important agreement helps to integrate SARS and BMA strategically and operationally.

Commissioner Kieswetter said that:

“The agreements concluded today prove the success of a whole-of-government approach to tackle modern and sophisticated challenges that government faces. The opportunity to have a common platform dealing with a unique digital identity for individuals and entities will help government to ensure that there is only one identity through which the individual interacts with government. This unified platform will surely prevent double-dipping, such as when an individual receives a grant while they are in government employ. It will also build smart modern organisation that makes the movement of people seamlessly”

Livhuwani Makhode, DHA Director-General, expressed his delight at the revival of the agreement between DHA and SARS. He said:

“This exceptional and reliable relationship with SARS, which has been existence since 2010, represents a right step in dealing with myriad challenges faced by Home Affairs. Creating a smart digital platform to achieve free movement of people while ensuring that undesirable individuals are detected will be a giant leap forward. Extensive use of digitisation, including the use of biometrics, is the way the department will operate. This collaboration will accelerate initiatives such as electronic travel-permits, digitisation of the naturalisation process, and implementing more efficient permanent-residency protocols”.

The BMA Commissioner Dr Masiapato commended the excellent collaboration between SARS and BMA. He said that:

“The multiparty agreement signed today will enhance the relationship that has already been in place with SARS. He underscored the importance of the use of digitisation process in ports of entry and border law enforcement areas. The existing vibrant relationship will benefit immensely from this agreement and create real value for travellers in and out of the country while enhancing the capability to stop the movement of illegal migrants”.

The CEO of Government Printing Works Ms Alinah Fosi said that it was an honour for her on behalf of GPW to form part of this multi-party agreement. She said that:

“GPW is part of the digital ecosystem, and this agreement will therefore assist the organisation with delivery on its mandate, and strategic role, and vision as a Certification Authority and Digital Trust Centre. GPW will serve the role of verification and certification of digital ID’s using e-government platforms to enable RSA citizens to access their service at a touch of a button using mobile technology as well. This is critical as the security of government documents will be ensured and trusted.  Unquestionably the digitisation of documents not only enhance their security, but it will also assure their quality and authenticity thereby enabling travellers a safe and hassle-free travel especially when traveling in the continent and abroad”.

Photo: Signing of Multiparty Collaboration Agreement – Left to right: BMA Commissioner Dr Masiapato, SARS Commissioner Mr Edward Kieswetter, CEO of GPW Ms Alinah Fosi, DHA Director-General Mr Livhuwani Tommy Makhode.

For further information, please contact [email protected].

3 April 2025 – SARS’s Payments Guide has been updated to reflect the name change of Grindrod Bank, which has been changed to African Business Bank.

• GEN-PAYM-01-G01 – SARS Payment Rules – External Guide

3 April 2025 – Customs and Excise Act, 1964: The tariff amendments notices, scheduled for publication in the Government Gazette, relate to the amendments to –

• Part 1 of Schedule No. 1, by the substitution of tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99, to increase the rate of customs duty on sugar from 234.89c/kg to 286.25c/kg in terms of the existing variable tariff formula (ITAC Minute 13/2024);
• Part 1 of Schedule No. 1, by the substitution of tariff subheadings 1001.91 and 1001.99 as well as 1101.00.10, 1101.00.20, 1101.00.30 and 1101.00.90, to reduce the rate of customs duty on wheat and wheaten flour from 42.20c/kg and 63.29c/kg, respectively to 18.35c/kg and 27.52c/kg, in terms of the existing variable tariff formula (ITAC Minute M09/2024);
• Part 1 of Schedule No. 1, by the deletion and insertion of various tariff subheadings under tariff heading 44.11 as well the insertion of Additional Note 1 to Chapter 44 to provide for ad hoc technical amendments; and
• Part 1 of Schedule No. 3, by the insertion of rebate item 306.01/2815.11/03.06 to provide for a rebate facility on solid sodium hydroxide (caustic soda), classifiable under tariff subheading 2815.11, for conversion into sodium hydroxide in aqueous solution, classifiable under tariff subheading 2815.12 – ITAC Report 731.

Publication details will be made available later

3 April 2025 – Achieving our Vision of a smart, modern SARS with unquestionable integrity that is trusted and admired is of paramount importance. Pivotal to the delivery of our vision are our digital platforms and technology infrastructure. To provide clarity and certainty, make it easy for taxpayers and traders to comply with their obligations and building public trust and confidence, our technology assets must demonstrate the highest levels of availability, robustness, and security.

In accordance with our Vision and Strategic Objectives, which include modernising our systems to provide Digital and Streamlined online services, we are hard at work ensuring that our digital platforms and technology infrastructure are available, robust, and secure, by performing regular upgrades, enhancements, and maintenance.

Considering the above, SARS Digital platform maintenance is scheduled for:

Friday, 04 April 2025 from 20h00 to 00h00,

Saturday, 05 April 2025 from 18h00 to 20h00.

During this time, you may experience intermittent service interruption on our eFiling, Tax and Customs Digital Platforms.

3 April 2025 – The Mpumalanga mobile tax unit schedules for April to June 2025 are now available.

2 April 2025 – Value-Added Tax Act, 1991: In response to the recent regulations promulgated on 14 March 2025, two publications relating to Frequently Asked Questions have been published, to assist vendors who may have any questions:

• Frequently Asked Questions – Domestic Reverse Charge Regulations (Issue 4)
• Frequently Asked Questions – Supplies of Electronic Services (Issue 3)

1 April 2025 – The South African Revenue Service (SARS) is pleased to announce a positive preliminary revenue-collection outcome for the 2024/25 fiscal year. This achievement takes place in a tough economic environment.

SARS is a cornerstone of our cherished democracy. Since its establishment, it has collected more than R23.3 trillion to help build a capable state that caters for all. This success is inextricably linked to an efficient and effective revenue administration that discharges its legal mandate to collect all revenue due to the fiscus, foster compliance and facilitate legitimate trade. As an organisation, everything we do, is about the transformational impact we have on the lives of people, which we call our “Higher Purpose”. We are on the road to reimage our organisation into a smart, modern SARS that can be trusted and admired by all, as encapsulated in our Vision 2025–2030.

By the end of March 2025, SARS had collected a record gross amount of R2.303 trillion, representing year-on-year growth of 6.9% against estimated nominal GDP growth of 5.4% (2024/2025). In this difficult economic environment, SARS paid refunds of R447.7 billion to taxpayers, the highest-ever amount in refunds (versus R413.9 billion in the prior year), representing growth of 8.2%. This brings the collected net amount to R1.855 trillion, which is almost R8.8 billion higher than the revised estimate, and R114.0 billion more than last year’s R1.741 trillion.

“I am pleased that the R447.7 billion returned into the hands of taxpayers is good for the economy”, said Commissioner Kieswetter. “I, however, remain deeply concerned about the ever-present threat of refund fraud and abuse of the system”. To illustrate this problem, in the period under review, SARS prevented the outflow of R146.7billion of impermissible refunds.

The preliminary revenue collection represents a substantial tax-to-GDP ratio of 24.8%, reflecting the country’s fiscal health and efficiency in revenue generation. Moreover, the tax-buoyancy ratio for the fiscal year 2024/25 was estimated at 1.20, indicating the robust response of tax revenue relative to economic growth. This buoyancy ratio underscores the government’s capacity to adapt its revenue-collection strategies to the dynamic economic environment, ensuring sustained fiscal stability and growth.

In the fiscal year 2024/25, the performance of key taxes has been a critical indicator of economic stability as South Africa navigates the complexity of post-pandemic recovery. There has been a notable shift in revenue streams, influenced by a combination of market dynamics, trade patterns, and consumer behaviour. This has resulted in shifts in the outlook for some of the key indicators that underpinned revenue performance. For example, nominal GDP was expected to grow at 5.7% at Budget 2024 and adjusted to 6.1% midway through 2024/25. At Budget 2025, the outlook had been reduced to 5.4%. The growth of some indicators, such as the wage bill, final household expenditure, imports, and exports were forecasted to fall during the year, whereas the estimates for gross operating surplus improved.

South Africa demonstrated uneven economic recovery, exhibiting both positive advancements and enduring difficulties. The Finance, Community, Wholesale, and Construction sectors had robust gains, contributing to the 6.1% year-on-year growth in revenue collections (2024/25) and 4.4% in GDP (2025). Below is the performance of the respective taxes.

Net Personal Income Tax (PIT) Including Interest

Net PIT (including interest) was estimated to grow at 13.8% at Budget 2024; 12.3% at MTBPS; and 12.9% at Budget 2025. Net PIT grew by R81.8 billion (12.6%), which could be partly attributed to above-inflation growth in the Finance and Community sectors’ pay-as-you-earn (PAYE), as well as the gains from Two-Pot withdrawals. The Two-Pot directives were valued at R12.9 billion for the year-to-date, compared to the projected estimate of R5.0 billion (R7.9 billion more). Furthermore, there has been a noticeable improvement in PAYE tax compliance, as indicated by the Voluntary Compliance Index, which rose by 0.38 percentage points from the previous year’s 75.10% (2024/25) to 75.48%. This uptick in compliance efforts is shaping taxpayer behaviour.

Net Company Income Tax (CIT) Including Interest

The assumption for Net CIT (including interest) was -3.3% at Budget 2024; 0.4% at MTBPS; and 1.1% at Budget 2025. Net CIT grew by R6.5 billion (2.1%), driven by CIT Provisional Tax collections of R323.3 billion, which were R10.5 billion (3.3%) higher than in the prior year, and exceeded the Budget 2025 estimate by (R4.3 billion, 1.4%). The growth was mainly due to the Finance sector, which was buoyed by improved profits, whereas the Mining sector continued to contract. The CIT Voluntary Compliance Index rose by 3.2 percentage points from the previous year’s 48.43% (2024/25) to 51.66% (February 2025), with notable improvements in filing compliance.

Net Value-Added Tax (VAT)

Net VAT, which contributed 24.7% of total collections, grew by R10.5 billion (2.3%).

The assumption for VAT refunds was growth of 7.6% at Budget 2024; 6.7% at MTBPS; and 7.2% at Budget 2025. At the end of March 2025, VAT Refunds amounting to R365.5 billion were disbursed, with year-on-year growth of R22.5 billion (6.6%). The top three refunded sectors were Mining (mainly owing to higher exports and local expenses), Finance, and Manufacturing. Preliminary indications are that SARS’s efforts avoided leakage worth R74.0 billion (R60.7 billion avoided in 2023/24), predominantly thanks to syndicated-crimes investigation, investigative audit, and tax verifications.

Total VAT refunds this year of R365.5 billion represent about 4.9% of GDP. It is pleasing that of all the refunds, R127.4 billion were directed to SMMEs, which are pivotal in driving job creation.

The assumption for Domestic VAT was growth of 6.4% at Budget 2024; 7.1% at MTBPS; and 7.3% at Budget 2025. Domestic VAT collections amounted to R562.1 billion, growing by R36.6 billion (7.0%). Of this, R271.0 billion (48.2%) of the Domestic VAT was paid by large business vendors, and R292.1 billion (51.8%) by “non-large” business vendors, predominately from the Finance sector. This growth can be attributed to factors including improved consumer sentiment, lower interest rates, contained inflation, and early pension-fund withdrawals, all of which have bolstered household consumption in the last quarter of 2024. Furthermore, an additional R9.8 billion was collected as cash from SARS Compliance Revenue efforts. The VAT Voluntary Compliance Index rose by 1.8 percentage points from the previous year’s 63.78% (2024/25) to 65.58%, signalling positive shifts in the in-year compliance trends.

The assumption for nominal imports was growth of 6.0% at Budget 2024; 3.8% at MTBPS 2024; and 1.5% at Budget 2025. The assumption for Import VAT was growth of 8.2% at Budget 2024; 0.7% at MTBPS; and -0.5% at Budget 2025. Actual imports had contracted by -3.3% by 31 March 2025, resulting in lower-than-assumed Import VAT of R2.30 billion as measured against the Budget 2025 estimate. Import VAT collections contracted because of fewer imports of electrical machinery as well as vehicles, parts, and machinery.

SARS believes that taxpayers are honest and want to be helped to meet their obligation. In this respect, SARS makes it easy and simple for taxpayers to transact with the organisation by proving clarity and certainty. However, when taxpayers wilfully abdicate their legal obligation, SARS makes it hard and costly for them.

SARS is taking advantage of technology such as data science, artificial intelligence, and machine-learning algorithms to counter criminality and wilful non-compliance. These systems also ensure that no legitimate refunds are denied, while preventing impermissible and fraudulent refunds.

The SARS Compliance Programme interventions generated R301.5 billion in compliance revenue, marking a 15.8% year-on-year increase. A portion of this revenue could be attributed to cash-collection initiatives, amounting to R154.8 billion. Strategies to prevent revenue leakage contributed another R146.7 billion. Efforts and outcomes from SARS’s administrative activities included:

• R94 billion from resolving over 3.7 million outstanding debt cases – supported by debt propensity ML models
• R103 billion from tax verifications where the risks were flagged through our AI driven risk profiling models powered with Big Data, debt equalisation and refund fraud risk management ML models – executing 1.7 million verifications cases
• R59 billion from executing 230 000 tax and customs compliance audits 
• R30 billion from syndicated crime – conducting 198 complex investigations (made up of 165 Illicit, 33 State Capture)
• R15 billion from general compliance work – 870 000 compliance follow up
• 20 million service-related interactions at our branches, via the phone or through our digital self-service platforms assisting taxpayers and traders to comply.

The broad rise in revenue can be attributed to enhanced strategies and the diligent implementation of compliance measures. Revenue growth demonstrates the efficacy of targeted efforts to optimise fiscal outcomes. Such results underscore the importance of refining compliance operations to deliver sustainable financial growth and accountability. This remarkable achievement underscores SARS’s commitment to rigorous compliance and our ability to drive revenue-collection growth through strategic interventions.

As mentioned in the Budget 2025, the ongoing research to refine the estimation of SARS’s tax gap is showing promising progress, reflecting a dedicated effort to enhance fiscal transparency and efficiency. In 2023, the completion of the VAT Tax Gap Study was a milestone that set the stage for the current focus on CIT and PIT tax-gap studies, which have been under way since 2024.

The Minister of Finance, Enoch Godongwana, has allocated SARS an additional R7.5 billion over the MTEF period. SARS intends in the short to medium term to use this allocation to reduce its debt cash collection and pursue the more than 5 million outstanding returns. Equally important, SARS will continue to strengthen its efforts to deal firmly with the illicit economy, trade-based money laundering and illicit financial flows including illicit cigarettes, second-hand gold, crypto currency, trade mispricing and undervaluation fraud amongst others. Over the same period, SARS will also expand the modernisation of its systems in both tax and customs.

As we reimagine the organisation, we envisage a future state when tax transaction is seamless and just happens. This is an experience witnessed by nearly 5 million taxpayers who benefited from Auto Assessment last year, in which taxpayers did not have to do anything: by harnessing third-party data, SARS reconciled their tax affairs. Even though taxpayers retained the right to provide SARS with additional information the organisation did not have, the uptake of Auto Assessment was more than 98%, with those who made actual changes representing less than 1% of Auto-Assessed taxpayers. Those who were due refunds received them in 72 hours. Taxpayers who opted to file their returns received an outcome in five seconds. We are also pleased that taxpayer service has increased by 5.8% from last year to 87.13%. This is indeed a story of HOPE.

SARS is making steady progress in its strategic intent to build a tax and customs system that is based on voluntary compliance, while enhancing its capability to detect, deter, and make wilful non-compliance hard and costly. To exercise sovereignty over the destiny of our country, we must broaden our tax base and continue to encourage fiscal citizenship, while connecting people, data, and technology to deliver our mandate. As we step into the 2025/26 fiscal year, our primary goal is strategically to harness the components of our balance sheet. SARS will continue to deepen its work with and through all stakeholders in the tax ecosystem to engender trust in the organisation.

The success of SARS is integral to the success of whole of government. Several legacy projects if implemented will anchor and sustain the whole of government approach and strengthen the National Financial System​. While the mandate of each government entities will be respected, we collaborate on several projects amongst other, a unique digital identity for individuals and entities, common portal ensuring data integrity segregation based on mandates of agencies. ​ We will also look at a common payment platform with e-invoicing​ and this will reduce the volume of cash in the system​ as well as a common disbursement platform to replace the disparate payment platforms.  SARS, subject to funding and appropriate support is ready to lead these initiatives since they are critical to our and other government departments success.

We are equally pleased that SARS employees through an employee engagement survey demonstrates a steady and remarkable improvement year on year. In the year 2024/2025, it stands at 71% from 69% in 2023/2024, moving from 61% in 2019/2020. This positive development communicates a clear message that every year our employees are committed to serve our country with steadfast determination and pride.

The Minister has set for SARS revenue estimate of R2.006 trillion for the 2025/26. This conveys confidence by the Minister on SARS’s ability to meet this challenge. We will spare no efforts in rising to this challenge.

“In the build-up to the momentous occasion of this revenue announcement, I made a clarion call to action to the whole SARS family regardless of whether they were in core operations, enabling, or support functions”, said Commissioner Kieswetter. “I must proudly state that they all responded resoundingly. They all went out and made calls and looked for the inches that contributed to this glorious result. I am deeply indebted to all my colleagues for rising to the challenge”. Their commitment to serve South Africans is self-evident.

“I also express my heartfelt thanks to all South Africans, especially compliant taxpayers and traders, for unfailingly meeting your legal obligations. We are forever working hard to make your experience with SARS easy and seamless — where the best service is no service at all”, he concluded.

For further information, please contact [email protected].

1 April 2025 – Customs and Excise Act, 1964: Publication details for tariff amendments notices R6078, R6079, and R6080, as published in Government Gazette 52436 of 1 April 2025, are now available.

31 March 2025 – Customs and Excise Act, 1964

The tariffs amendments notices scheduled for publication in the Government Gazette relate to the following amendments:

With effect from 1 April 2025

• Part 1 of Schedule No. 1, by the substitution of tariff subheadings 8517.13.10, 8517.14.10, 8517.62.20 and 8517.69.10 to provide for a flat rate of 9% on smartphones with a price greater than R2 500 to give effect to the Budget proposals announced by the Minister of Finance on 12 March 2025
• Part 2B of Schedule No. 1, by the substitution of tariff items 124.37.05/8517.13.10, 123.37.07/8517.14.10, 124.37.11/8517.62.20 and 124.37.15/8517.69.10 to provide for a flat rate of 9% on smartphones with a price greater than R2 500 to give effect to the Budget proposals announced by the Minister of Finance on 12 March 2025

With effect from 2 April 2025

• Part 5A of Schedule No. 1, by substitution to Note 8 for an increase of 3c/li in the carbon fuel levy from 11c/li to 14c/li for petrol and from 14c/li to 17c/li for diesel, respectively, to give effect to the Budget proposals announced by the Minister of Finance on 12 March 2025

Publication details will be made available later

31 March 2025 – Constitutional Court Judgments

• CSARS and Another v Richards Bay Coal Terminal (Pty) Ltd (CCT 10423) [2025] ZACC 3 (31 March 2025)

Customs and Excise Act 91 of 1964 — tariff determination — section 47(9)(e) — wide appeal — review in terms of Promotion of Administrative Justice Act 3 of 2000, section 33 of the Constitution, or alternatively, the principle of legality — rule 53 record — rule 30A application — review jurisdiction — whether taxpayer confined to a wide appeal.

• United Manganese of Kalahari (Pty) Limited v CSARS and four other cases (CCT 9423; CCT 9823; CCT 6623; CCT 7224; CCT 32023) [2025] ZACC 2 (31 March 2025)

Section 105 of Tax Administration Act 28 of 2011 — test for granting a direction — relevant considerations in granting or
refusing direction — discretionary nature of power to grant direction — production of rule 53 record pending direction

Peremption of appeal — relevant factors in overlooking

31 March 2025 – Income Tax Act, 1962

Multilateral Instrument (MLI) synthesised texts:

• Croatia
• Seychelles
• Tunisa

31 March 2025 – Income Tax Act, 1962

• Binding Private Ruling 414 – Application of the proviso to section 8EA(3)

31 March 2025 – Income Tax Act, 1962

• Binding Class Ruling 092 – Application of the proviso to section 8EA(3)

31 March 2025 – The South African Revenue Service (SARS) is preparing to implement enhancements to the Tax Directives process as indicated in the IBIR-006 Tax Directives Interface Specification Version 6.803. To access the Tax Directives Interface Specification, visit www.sars.gov.za, go to the “Individuals” page through the top-most menu, and choose “I want to get a tax directive”. We strongly recommend that you review IBIR-006 before proceeding with testing.

This version will resolve the issues encountered in the previous version regarding reason 54 and 48 transfers.

Trade testing began on 24 March 2025 and will run until 7 April 2025.

31 March 2025 – In this edition, we provide clarity and certainty about Donations Tax and we explore the different options to find out if you owe SARS any money.

31 March 2025 – South Africa recorded a preliminary trade balance surplus of R20.9 billion in February 2025. This surplus was attributable to exports of R164.0 billion and imports of R143.1 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN).

See the full Media Release here.

Or visit the Trade Statistics webpage.

31 March 2025 – Prohibited and Restricted Imports and Exports list

Tariff heading 7204.21 needs an ITAC Export permit.