Taxman launches new requirements for car owners in South Africa

The South African Revenue Service (SARS) is implementing new legal requirements for owners of foreign-registered vehicles today.

From 1 June 2026, all foreign-registered cars will need to be declared on SARS’ Traveller Management System (TMS) before entering or leaving the country.

SARS Commissioner Johnstone Makhubu said the measure brings South Africa in line with international customs practices.

The new requirement is part of SARS’ ongoing efforts to modernise the country’s border operations, improve compliance, and strengthen security at ports of entry.

It is also meant to help tackle the growing issue of illegally imported vehicles, which are costing South Africa’s automotive industry billions of rands and undermining local manufacturers.

Makhubu said that the process supports South Africa’s financial transparency obligations and national security objectives by ensuring that goods, currency, and vehicles are properly declared and assessed before crossing the border.

Under this new system, foreign vehicles that are brought into South Africa may be issued temporary import permit visas valid for six months.

These permits can be used for multiple border crossings without motorists needing to reapply every time they enter the country.

SARS stated that frequent travel for work, study, business, medical care or other legitimate reasons will not affect the validity of the permit, provided it remains active and is renewed before expiry.

Travellers are expected to complete declarations online before arriving at the border if they want to benefit from faster processing.

The revenue service said that officials will still be stationed at ports of entry to assist those unable to complete the process electronically.

Makhubu stressed that online declarations do not replace physical border controls and that travellers must still present themselves for customs verification and inspections when necessary.

“Compliance is not optional; vehicle owners who do not declare foreign-registered vehicles or who provide false or incomplete information expose themselves to enforcement consequences and prolonged processing at the border,” he said.

“I also wish to reaffirm that where vehicle owners comply with all the legal requirements, the process will be seamless; however, where compliance is low, this may lead to delays in border crossings.”

Combating grey imports

One of the primary goals of the new requirements is to help crack down on “grey vehicles.”

“Grey vehicles,” otherwise known as grey imports, is an industry term referring to cars imported to South Africa via unauthorised channels, bypassing official dealership networks and regulatory requirements.

Naamsa stated that these illegal imports cost the fiscus up to R8 billion annually by evading import duties, VAT, and other taxes.

This figure has more than doubled from R3.8 billion in 2020, representing a 110% increase since the start of the decade.

The National Automobile Dealers’ Association (NADA) estimates that roughly 50,000 illegal vehicles are added to South Africa’s roads every year despite regulations meant to limit their entry.

“Over the past five years alone, half a million vehicles bearing foreign registration plates have been recorded operating locally,” NADA said.

“These figures are particularly alarming given that the official vehicle parc in South Africa totals approximately 13 million vehicles.”

Based on these figures, approximately 4% of South Africa’s vehicles may be grey imports.

Naamsa believes the true number could be much higher, with illegal second-hand models accounting for around 7.5% of the country’s vehicle parc.

Beyond lost tax revenue, NADA warned that these cars fail to meet South African safety, quality, and environmental standards.

“They undermine the viability of the formal vehicle retail market, where dealerships comply with stringent quality, safety, and environmental standards,” the association said.