A Second Chance for Importers: What SA’s New Customs and Excise Disclosure Relief Really Means

or years, South Africa’s Voluntary Disclosure Programme (VDP) has been a lifeline for taxpayers who slipped up on income tax, VAT, or PAYE. But when it came to customs and excise – some of the riskiest areas of compliance – businesses were left out in the cold. That’s about to change.

A Long-Awaited Reform

The 2025 Draft Tax Administration Laws Amendment Bill, released earlier this month, proposes a bold new chapter in the Customs and Excise Act. For the first time, importers, exporters, and manufacturers will be able to “come clean” on past customs and excise contraventions without facing the full force of penalties or prosecution.

In plain terms, if you’ve underpaid duties, submitted incomplete paperwork, or claimed rebates you weren’t entitled to, the new VDP could give you a structured way to fix it. Even VAT shortfalls linked to imports or locally manufactured goods – from alcohol to sugary drinks under the health promotion levy – fall under the net.

What Relief Looks Like

The relief isn’t just symbolic. Businesses that step forward before SARS catches wind of an irregularity can expect:

• No criminal charges

• Penalties scrapped

• Waived forfeiture amounts

• Relief that mirrors the already successful general VDP for mainstream taxes

But there’s a catch: you only get this protection if your disclosure is both voluntary and complete. If SARS has already launched an investigation, or if you withhold crucial information, the deal is off the table.

Why Timing and Honesty Are Key

This isn’t a loophole to generate refunds or game the system. SARS is making it clear that disclosures must be genuine. Incomplete or misleading submissions could see relief withdrawn, leaving businesses in a worse position than before.

Local Context: A High-Stakes Game

Customs and excise penalties have always been harsh. South African companies in industries like alcohol, tobacco, and imports know how devastating non-compliance can be – not just financially but reputationally. Until now, there was no official mechanism for these businesses to correct past mistakes without risking collapse.

This move signals a more pragmatic approach from SARS: encouraging voluntary compliance rather than relying purely on punitive enforcement.

The Bigger Picture

South Africa has been tightening the screws on tax compliance across the board. This reform doesn’t soften SARS’s stance – it sharpens it. By offering a safe route for disclosure, the revenue service strengthens its hand to come down harder on those who choose to hide.

For businesses, the message is crystal clear: review your customs and excise history now. If skeletons are hiding in the paperwork, this may be the only real chance to bring them into the light before penalties and prosecutions follow.

Source:Money Web 

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