The South African Revenue Service (Sars) on 20 May 2016 announced an amendment, through substitution, of Part 1 of Schedule No. 4 to the Customs and Excise Act, 1964 of Rebate Item 412.10/00.00/01.00 to the Act, 1964, which serves to review the value and number of unsolicited postal gifts.
The rebate item’s “description” reads “Bona fide unsolicited gifts of not more than two parcels per person per calendar year and of which the value per parcel does not exceed R1 400 (excluding goods contained in passengers' baggage, wine, spirits and manufactured tobacco products) consigned by natural persons abroad to natural persons in the Republic.” The “Extent of Rebate” is the full duty.
In addition, an amendment was made to the Value-Added Tax Act, 1991 (VAT Act). According to the notice, there is an additional amendment in respect of the unsolicited mail, which was published in the Government Gazette, the amendment of item no. 412.10/00.00/01.00 of Schedule No. 1 to the VAT Act.
The notice amends item no. 412.10/00.00/01.00 of Schedule 1 to the VAT Act to increase the value of bona fide unsolicited gifts imported from R400 to R1 400 and to limit the number of the gifts to two per person per annum.