On 03 April 2023, the South African Revenue Service (SARS) Executive: Excise provided details, in a letter, to importers and local manufacturers, of vaping tobacco products about taxing:
“The Minister of Finance announced in the 2022 Budget on 23 February 2022 that excise duty on vaping tobacco products would be introduced. Nicotine and nicotine-substitute solutions in vaping products will be included in the tax net with a flat excise duty rate of R2.90/ml from 1 June 2023.
As a result, tariff amendments were affected to Part 2A of Schedule No.1 as well as rebate and refund items in Part 1E of Schedule No. 6 to the Customs and Excise Act, No. 91 of 1964 (the Act). The forms DA260 Excise Account for Tobacco Products in which the vaping products will be accounted for excise duty purposes were also amended to insert the vaping products.
These amendments as published in the Government Gazette are available on the SARS website at the following links respectively:
https://www.sars.gov.za/wp-content/uploads/Legal/AmendActs/LPrim-AA2022-02-Taxation-Laws-Amendment-Act-20-of-2022-GG-47826-5-Jan2023.pdf
https://www.sars.gov.za/legal-counsel/secondary-legislation/ruleamendments/rule-amendments-2023/
SARS shall collect the excise duty on these vaping products as provided for in terms of Part 2A of Schedule No. 1 of the Act from 1 June 2023 as announced in the Budget.
Manufacturers of these products are therefore required to apply for and obtain licences for their manufacturing premises in respect of such products with SARS before 1 June 2023 and to submit their first excise duty account by 28 July 2023. Special storage warehouses in respect of such products should similarly be licensed with SARS before 1 June 2023.
For any Licensing and Registration queries contact the nearest Customs Branch office or email CustomsSSMReg@sars.gov.za.
Sincerely”
