SA Car Imports: New Rules You Need to Know in 2025

Big changes are here for importing cars into South Africa in 2025. New regulations include stricter eligibility, higher costs, and a focus on eco-friendly vehicles. Here’s what you need to know:

• Higher Import Duties: Duties now range from 18% to 36%, depending on vehicle type, age, and origin. EU vehicles get reduced rates.
• Eligibility Rules: Only certain groups (e.g., returning residents, immigrants with permanent residency) qualify to import, with strict documentation requirements.
• Eco-Focus: Incentives favor electric and hydrogen vehicles, though EVs still face a 25% duty.
• Cost Increases: Taxes like VAT, ad valorem duty, and carbon tax significantly raise import costs.
• Documentation & Permits: Importers need a Letter of Authority (LOA) and an Import Permit before shipping.

These updates aim to protect local manufacturing and promote cleaner vehicles. If you’re planning to import a car, careful preparation and budgeting are essential to navigate these changes smoothly.

The REAL Reason Cars Are So Expensive in South Africa + Mazda CX-5 & Chinese Car Sales Update

Major Changes in South Africa’s 2025 Car Import Rules

South Africa’s car import regulations for 2025 introduce a range of updates, including adjusted duty structures, stricter qualifications for importers, and an emphasis on eco-friendly vehicles. These changes will affect both individual importers and larger automotive companies.

New Import Duties and Tax Rates

The updated duty structure varies depending on the type, age, and origin of the vehicle. Here’s how the new rates break down:

• Light vehicles: A 25% import duty, while original equipment components are taxed at 20%. Vehicles from the European Union (EU) enjoy a reduced rate of 18%.
• Medium and heavy commercial vehicles: A 20% ad valorem duty applies, but EU imports are taxed at 12%.
• Age-based duties: Vehicles over 20 years old face a 20% duty, while newer models can be taxed as high as 36%. Additional ad valorem charges range from 0.75% to 20%, depending on the vehicle’s value.

Although the 15% VAT rate remains the same, combining it with these duties significantly increases overall import costs. For example, in 2023, seven original equipment manufacturers paid $947 million (R16.937 billion) in taxes and duties, showcasing the financial impact of these policies. These adjustments reflect the government’s broader economic objectives.

Why the Government Is Making These Changes

The updated regulations aim to protect local manufacturing, reduce dependency on imports, and encourage job creation. Given that imports account for a large portion of domestic sales while exports dominate production, the government hopes to rebalance this dynamic.

A key focus is also on promoting eco-friendly vehicles, such as electric and hydrogen-powered models, aligning South Africa with global trends in sustainable transportation. These incentives are expected to drive up vehicle prices, pushing consumers to rethink their buying decisions. Alongside these economic changes, the government has also clarified who qualifies to import vehicles under the new rules.

Who Can Import Vehicles

The 2025 regulations continue to enforce strict eligibility criteria and require detailed documentation for importers. Here’s a breakdown of the main categories:

• Returning South African Residents: Must prove at least six months of foreign residency with documents such as a South African ID or passport, employer confirmation, and a certified foreign vehicle registration certificate.
• Immigrants with Permanent Residence: Required documents include proof of permanent residency, a foreign passport, and the vehicle’s foreign registration certificate. While these groups qualify for duty exemptions, they face a two-year restriction on reselling the imported vehicle.
• Special Vehicle Categories: Includes racing vehicles (with an MSA racing license for circuit use only), vintage cars (over 40 years old), and vehicles designed for disabled persons.
• Left-Hand Drive Vehicles: Generally prohibited unless registered in the owner’s name before January 1, 2000, or with verifiable ownership history.

Additionally, a 12-month ownership requirement is in place to ensure vehicles are imported for personal use rather than commercial resale. When paired with permanent residency rules, this framework ensures a controlled and legitimate vehicle import process.

Vehicle Types and Required Standards

As part of the 2025 updates, specific guidelines outline which vehicles qualify for import and the standards they must meet. Vehicles must adhere to defined safety and environmental regulations. These rules ensure a controlled import process while protecting the local automotive industry.

Allowed Vehicle Categories for Import

South Africa’s vehicle import system relies on a permit-based structure designed to safeguard local car manufacturing. The regulations categorize eligible vehicles into specific groups, each with distinct requirements:

• Personal Use Vehicles: Includes passenger cars and light commercial vehicles intended for individual use only.
• Specialty Vehicles: Racing cars are allowed, but only with a valid Motorsports South Africa (MSA) racing license.
• Vintage and Classic Vehicles: Cars over 40 years old qualify under vintage vehicle provisions, pending National Regulator for Compulsory Specifications (NRCS) approval.
• Vehicles for Disabled Persons: Modified vehicles designed for disabled individuals are eligible with proper documentation.
• Inherited Vehicles: Cars passed down through inheritance can be imported with the correct estate documentation.

These categories help clarify the types of vehicles eligible for import under specific circumstances.

"The importation of used vehicles is restricted to protect the local motor vehicle manufacturing industry. Permits are only issued under specifically defined circumstances." – South African Government

Right-Hand Drive and Left-Hand Drive Rules

South Africa enforces strict rules regarding the steering configuration of imported vehicles. Only right-hand drive (RHD) vehicles are permitted for road use.

"Left-hand drive vehicles are prohibited in South Africa. Only right-hand drive (RHD) EVs can be imported and registered." – Charge Ninja

Exceptions for left-hand drive (LHD) vehicles are rare. They include cases where the vehicle was registered in the owner’s name before January 1, 2000, or if the car is intended for museum displays or private track events.

Given that both South Africa and Japan use RHD vehicles, Japanese models are often a popular choice among importers since they naturally meet this requirement.

Regardless of the steering configuration, all imported vehicles must fully comply with South Africa’s safety and environmental standards before approval. Securing the necessary permits and ensuring compliance with these regulations is crucial to avoid delays or rejections at the border.

Required Documents and Import Steps

Bringing a vehicle into South Africa involves careful planning and ensuring all the required paperwork is in place. The process spans several government agencies, and completing each step correctly is essential to avoid unnecessary delays or expenses.

Required Documents for Vehicle Imports

To import a vehicle, you’ll need two key approvals: a Letter of Authority (LOA) from the National Regulator for Compulsory Specifications (NRCS), which verifies that your vehicle complies with safety and environmental standards, and an Import Permit from the International Trade Administration Commission (ITAC), which confirms your vehicle meets South Africa’s import regulations.

The documents you need also depend on your status as an importer. Here’s a quick breakdown:

The cost for the Letter of Authority varies between ZAR 300 and ZAR 1,800, depending on the vehicle’s age and type. If you’re using South African agents to forward your import permit to an international address, expect an extra courier fee of about ZAR 450.

Once your documents are ready, you can move on to the next steps in the import process.

Complete Import Process Steps

After gathering the necessary paperwork, follow these structured steps to ensure a smooth import process. Preparation starts even before shipping your vehicle.

Step 1: Confirm Eligibility
South Africa restricts vehicle imports to specific categories, such as returning residents, immigrants with permanent residency, and special vehicle types like vintage cars, racing vehicles, or those adapted for disabilities.

Step 2: Obtain Required Permits
Begin by applying for the Letter of Authority through the NRCS. Once approved, apply for the Import Permit from ITAC. Both permits must be secured before your vehicle is shipped to South Africa. Working with a shipping company familiar with South African import laws can help prevent errors in documentation.

Step 3: Customs Clearance
Clearing customs is one of the most intricate parts of the process. Import duties include a 36% customs duty for vehicles under 20 years old or 20% for those older than 20 years. Additionally, Ad Valorem Duty ranges from 0.75% to 20%, and a 15% VAT is charged on the adjusted value. Some exemptions may apply depending on your circumstances.

Step 4: Registration and Roadworthiness Testing
Before driving your imported vehicle in South Africa, it must pass a roadworthiness test, which costs about ZAR 200. This ensures the vehicle meets local safety standards, regardless of its origin.

Each step must be followed carefully to meet South Africa’s 2025 import regulations. Common pitfalls include submitting incomplete or incorrect documentation, misclassifying tariffs (which can increase duties), and failing to confirm LOA eligibility for certain vehicle types. If you’re unsure about any part of the process, hiring an import consultant can help you avoid costly mistakes.

sbb-itb-09752ea

Import Costs and Tax Breaks

Importing a vehicle into South Africa comes with a range of taxes and duties that can significantly increase the overall cost. This section breaks down the financial factors importers should consider under the current regulatory framework.

Import Duty Rates by Vehicle Type

When bringing vehicles into South Africa, customs duties, anti-dumping and countervailing duties, and VAT all come into play. For passenger cars and SUVs, the standard import duty is 25%. However, vehicles from Europe and the UK enjoy a reduced rate of 18%. Electric vehicles (EVs), on the other hand, face a flat 25% import duty, regardless of origin, unlike internal combustion engine vehicles, which benefit from the lower 18% rate for EU/UK imports. This disparity has drawn criticism from industry groups like CHARGE:

"This incentive to boost local manufacturing is a positive step forward, but we also need to reduce the current high import duties for EVs – 25% compared to 18% for combustion engine vehicles. These taxes inflate EV prices, slow demand, and limit market growth."

Beyond import duties, other taxes also factor in. Passenger vehicles are subject to a carbon tax of R146 per gram of CO₂/km exceeding 95 g/km, while double-cab trucks face a higher rate of R195 per gram over 175 g/km. Notably, EVs are entirely exempt from this tax.

An additional cost to consider is the ad valorem duty, a luxury tax that scales with the vehicle’s price. For example, entry-level models may see around R8,000 added, mid-range SUVs about R30,000, and high-end family vehicles can incur over R100,000 in extra costs. These taxes collectively shape the financial landscape for vehicle imports.

Available Tax Exemptions

For manufacturers investing in local production of electric or hydrogen-powered vehicles, a 150% tax deduction will be available starting in March 2026. To encourage domestic battery production, the government is also evaluating a 15% import tax on EV batteries. These measures aim to balance the cost equation between EVs and traditional vehicles.

EV vs Traditional Vehicle Import Costs

The distinct tax treatments for electric and traditional vehicles lead to notable cost differences. Here’s a comparison of key cost components:

For example, consider a vehicle with a customs value of R300,000 and an import duty of R75,000. The Added Tax Value is calculated as:

R300,000 + (10% × R300,000) + R75,000 = R405,000

The VAT payable would then be 15% of R405,000, totaling R60,750.

For a traditional car emitting 150 g CO₂/km, the taxable emissions would be 150 – 95 = 55 g/km. At R146 per gram, the carbon tax would amount to approximately R8,030. In contrast, an electric vehicle would incur no carbon tax.

If the vehicle has four new tires weighing 10 kg each (totaling 40 kg), the tyre levy would be:

40 kg × R2.30 = R92.

While EVs face higher import duties, their exemption from carbon tax can help balance out some of the additional costs, especially when compared to traditional vehicles with higher emissions.

Tips for Following the 2025 Rules

Avoiding delays and unexpected costs starts with preparation. By understanding potential challenges and adopting smart strategies, you can streamline the import process and save both time and money.

Common Problems and How to Avoid Them

Documentation errors are one of the most common issues that can slow down permit approvals and increase costs. These mistakes often include incomplete forms, missing signatures, or mismatched vehicle specifications.

To avoid these headaches, create a detailed checklist for all required paperwork and set up an internal review process to double-check information before submission. Ensure every field is filled out correctly and that the supplier’s documents align with official records.

Misclassified tariff codes are another frequent problem, often leading to delays and fines. Customs authorities use Harmonized System (HS) codes to determine tariffs and regulatory requirements, so errors in classification can result in inaccurate duty assessments and penalties. For instance, mistakenly classifying a luxury SUV as a standard passenger car could lead to unexpected ad valorem duties. To avoid this, use the correct HS codes and stay informed about SARS customs regulations and any updates to tariffs. When unsure, consult customs experts.

Underestimating total import costs can turn a seemingly great deal into a costly mistake. Beyond the purchase price, you’ll need to account for charges like import duties, VAT, and ad valorem duties. Failing to budget for these can lead to financial strain.

To stay prepared, calculate all costs upfront, including the declared customs value, which must include transport and insurance as required by regulations.

Misunderstanding Incoterms® can also lead to added fees and delays. Ensure both parties fully understand their obligations under the agreed-upon Incoterms® before finalizing any deals.

By addressing these common pitfalls, you can make the import process smoother and more efficient.

Best Practices for Smooth Imports

Start early with permits to avoid last-minute issues. The Letter of Authority (LOA) application process can take weeks, so applying well in advance gives you time to resolve any problems that might arise.

Work with experienced professionals who understand South African import laws. Collaborate with a reliable shipping company specializing in vehicle imports, or hire a vehicle import consultant or customs clearance agent. Their expertise can help you navigate the complexities and avoid costly errors.

Select the right vehicle category for your needs. Ensure the car meets right-hand drive requirements and other specifications necessary for approval. Research the model thoroughly to confirm its compliance with South African regulations before committing to a purchase.

Buy from trusted dealers and carefully check the vehicle’s mileage. Verify that the car was imported legally to avoid complications. Stay away from grey imports, as they could lead to confiscation and a complete loss of your investment.

Keep your business registration details up to date to avoid customs delays. Errors or outdated information can cause unnecessary hold-ups during processing.

Plan your budget carefully, factoring in all expenses such as shipping, duties, taxes, and registration fees.

Lastly, avoid fraud by using reputable platforms when sourcing vehicles. If a deal seems too good to be true, it probably is. Stick to well-established dealers and platforms with a solid reputation in South Africa’s import market.

Conclusion: Getting Ready for New SA Car Import Rules

The upcoming 2025 car import regulations in South Africa are set to change the landscape for bringing vehicles into the country. These updates will impact everything from import duties and taxes to compliance standards and required documentation. If you’re considering importing a vehicle, understanding these changes isn’t just helpful – it’s absolutely necessary.

One of the most immediate challenges will be the financial implications. Import duties and additional fees could push costs far beyond initial expectations. These aren’t minor expenses, and overlooking them could lead to significant financial strain.

Beyond the financial aspect, compliance with the new regulations is critical. Requirements like right-hand drive adherence, roadworthiness certifications, and emissions standards remain non-negotiable. These rules are part of the government’s effort to protect the local automotive industry and ensure road safety. Missing even one of these can lead to delays, penalties, or even confiscation of the vehicle.

Preparation will make all the difference in navigating this process smoothly. Start by confirming your eligibility under the updated rules, whether you’re a returning resident, immigrant, or importing a vintage car. Apply early for necessary permits, such as the Import Permit from ITAC and the Letter of Authority from NRCS, as these can take time to process. Most importantly, create a detailed budget that accounts for all associated costs, including any hidden fees.

Staying informed is your best tool for avoiding costly mistakes. Platforms like ImotoNews South Africa offer up-to-date insights and guidance to help you navigate these changes. With regulations likely to continue evolving, having access to accurate, current information could save you from unexpected setbacks.

The 2025 regulations are here to stay, but with careful planning and reliable information, you can successfully import your vehicle while staying fully compliant. For a complete checklist and expert advice, refer back to earlier sections of this guide.

FAQs

How will the new 2025 import duty rates affect the cost of importing a car into South Africa?

The import duty rates for 2025 are set to increase to 25% for passenger vehicles, which will substantially hike the cost of bringing cars into South Africa. For instance, importing a car priced at R300,000 (around $16,000) would incur an additional R75,000 (approximately $4,000) just in duties.

This adjustment translates to higher expenses for importers, making it crucial to account for these added costs when planning your budget. Be sure to carefully review the updated regulations to avoid surprises and ensure all requirements are met.

What documents do South African residents and immigrants need to import a car under the 2025 rules?

To bring a car into South Africa under the 2025 regulations, you’ll need to have these documents ready:

• Vehicle registration certificate
• Passport or a valid ID
• Proof of permanent residency or employment abroad
• Letter of Authority (LOA)
• Import Permit
• Proof of vehicle ownership

Ensure that every document is current and complies with the South African authorities’ guidelines to prevent any delays or complications during the import process.

How will the 2025 regulations support eco-friendly vehicles, and what benefits are available for electric and hydrogen-powered cars?

The 2025 regulations are set to promote environmentally friendly vehicles by offering a 150% tax deduction on investments directed toward producing electric and hydrogen-powered vehicles. This initiative is intended to stimulate local manufacturing and draw more investment into sustainable technology sectors.

Another key proposal is a 15% import duty on batteries, which aims to encourage the growth of local battery production industries. These steps are not just about advancing cleaner transportation options – they also position South Africa as a stronger player in the global clean energy market.

Related posts

• Age-Based Import Taxes for Used Cars in South Africa
• South Africa’s Vehicle Import Tariffs Explained
• EV Import Duties in South Africa Explained