Importing guitars: SARS, customs duty and VAT - An Accountant's perspective

Theuns-vanWyk

Hi guys

I believe most of us have considered buying a little somethin' somethin' from oversees when the GAS gets unbearable.
With online stores and eBay it's just so easy! (I know, I know, you need to actually play it first before knowing if you want it, let's park that for now.)

But we never really know that if we do it (without someone sneaking it in at the airport), if we might not get the surprise of our lives when unwanted customs/VAT gets added onto the purchase price.

As an accountant, perhaps I'm a bit more prone to pondering these things, but still - you want to do something right, and with as little risk and surprise as possible.
(Yes accountants are mostly risk averse and boring...)

That being said I've been digging around for some time, and recently found a little guide on the SARS website, listing the import duties payable when goods are imported.
I am pleased to say that I am finally satisfied (enough) that I should not have to pay import duties when purchasing a guitar. (Yes guitars only for now).
It seems Chapter 92 of Schedule 1 No 1 to the Customs and Excise Act of 1964 refers to guitars as "stringed instruments", and states that the guitar, and accessories like a case it comes in are excempt for import duties.

http://www.sars.gov.za/home.asp?pid=2630 (if anyone want to also have a look - check chapter 92 of Schedule 1 no.1)

That gave me some comfort about the issue. (Although you cannot escape the VAT - so that you will pay.)

DISCLAIMER - I am not saying you should go for that PRS Single Cut Hollowbody II in charcoal burst you have been eyeing on eBay, and you won't pay any additional charges - I am just saying that I (me, personally) am a bit less restless of getting that ugly surprise if I (me personally) do something silly like that. We all know that many many can go wrong when dealing with SARS. (Not to mention eBay)

Anyways - thought I would share this with you, as it certainly left a little spring in my (boring, risk averse, tax optimised) accountant step.
Apologies if this has been covered in other forums - just thought the SARS website is a rather credible source... well sort of...)

Vrede mense
Theuns

kapepper

thanks but what is the big challenge for me

How do you get your guitar here in 1 piece and reliable way

USPS does not want to ship to SA since box dimensions are to big, assuming you buy guitar in a case
UPS and you pay more for the shipping then the guitar

any suggestions anybody, beside shipping with neck removed and case

thx

[deleted]

Shipping a guitar now days will cost you in the region of $800+ usd
It only ever makes sense if you buying something like a PRS, CS Fenders, Suhrs etc

You will only ever pay VAT, there is NO DUTY on anything guitars or effect pedals etc, or microphones..
I paid duty on the Amps.... but they pretty special and amps are not exactly something 'worth' importing, unless you want to drop R10k just to get them to you ☹ ?

I dont use local guitar shops purely because I never have to get in my car and put up with them, out of stocks, negotiating prices which are always marked to high, there are better prices overseas with shipping and VAT on top of that still.
I have imported 2 amps, 2 guitars, probably around 40 effect pedals, cables, strings, capos, everything is from the USA..
The one time I used a local supplier for an effect pedal he ended up disappearing with my money and its been a nightmare to get it back...
So I say go overseas, buy it all... I have a better customer relationship with guys in the USA than any local guitar shops...
\ have never ever had an issue (touches guitar) ?

Reinhard

Brentcgp wrote: Shipping a guitar now days will cost you in the region of $800+ usd
It only ever makes sense if you buying something like a PRS, CS Fenders, Suhrs etc

You will only ever pay VAT, there is NO DUTY on anything guitars or effect pedals etc, or microphones..
I paid duty on the Amps.... but they pretty special and amps are not exactly something 'worth' importing, unless you want to drop R10k just to get them to you ☹ ?

I dont use local guitar shops purely because I never have to get in my car and put up with them, out of stocks, negotiating prices which are always marked to high, there are better prices overseas with shipping and VAT on top of that still.
I have imported 2 amps, 2 guitars, probably around 40 effect pedals, cables, strings, capos, everything is from the USA..
The one time I used a local supplier for an effect pedal he ended up disappearing with my money and its been a nightmare to get it back...
So I say go overseas, buy it all... I have a better customer relationship with guys in the USA than any local guitar shops...
\ have never ever had an issue (touches guitar) ?

I haven't ordered lately, but I have never paid more than $300 for shipping.
Forum member Nick recently imported a guitar from thomann.de and his shipping was 50 euros.
If you get someone asking $800 for shipping I can assure you you will find someone willing to ship a similar guitar insured for a lot less.

On a side note, Ceriatone will ship a amplifier head for $120 and I was only hit with VAT this side. I am glad I didn't hear your Swart amps Brent, last thing in the world I need now is GAS ?

kapepper

Reinhard wrote:
Brentcgp wrote: Shipping a guitar now days will cost you in the region of $800+ usd
It only ever makes sense if you buying something like a PRS, CS Fenders, Suhrs etc

You will only ever pay VAT, there is NO DUTY on anything guitars or effect pedals etc, or microphones..
I paid duty on the Amps.... but they pretty special and amps are not exactly something 'worth' importing, unless you want to drop R10k just to get them to you ☹ ?

I dont use local guitar shops purely because I never have to get in my car and put up with them, out of stocks, negotiating prices which are always marked to high, there are better prices overseas with shipping and VAT on top of that still.
I have imported 2 amps, 2 guitars, probably around 40 effect pedals, cables, strings, capos, everything is from the USA..
The one time I used a local supplier for an effect pedal he ended up disappearing with my money and its been a nightmare to get it back...
So I say go overseas, buy it all... I have a better customer relationship with guys in the USA than any local guitar shops...
\ have never ever had an issue (touches guitar) ?
I haven't ordered lately, but I have never paid more than $300 for shipping.
Forum member Nick recently imported a guitar from thomann.de and his shipping was 50 euros.
If you get someone asking $800 for shipping I can assure you you will find someone willing to ship a similar guitar insured for a lot less.

On a side note, Ceriatone will ship a amplifier head for $120 and I was only hit with VAT this side. I am glad I didn't hear your Swart amps Brent, last thing in the world I need now is GAS ?

thanks! Which shipping company is this becaus if i ask on ebay auction, all sellers say they cant ship because of size restrictions through USPS....

AlanRatcliffe

It depends on who is shipping it. You are always going to pay a lot more buying from a "man in the street" type on Ebay than a store. If the store are a big shipper with an account, they get better pricing and pass it on to you. Shipping of my Carvin in large case and Box (FedEx or UPS, I can't remember which) for example was $150.

Oh, and USPS will ship it as oversized, but it works out expensive - about R3,500 last I looked (you can work it out with the tool on their site).

[deleted]

Okay I'm assuming shipping an acoustic! Thats my last quote from USPS, insured.

Electrics will always be smaller and yes cheaper!

exsanguinator

and for companies which dont ship to RSA
voila...!!!https://account.myus.com/signup/step1.aspx

Now another thing I noticed,
when my stuff arrives for collection.. there is only an amount payable..not a breakdown whether its import duty,V.A.T or both.
Can I ask for one?

exsanguinator

Theuns van Wyk wrote: Hi guys

I believe most of us have considered buying a little somethin' somethin' from oversees when the GAS gets unbearable.
With online stores and eBay it's just so easy! (I know, I know, you need to actually play it first before knowing if you want it, let's park that for now.)

But we never really know that if we do it (without someone sneaking it in at the airport), if we might not get the surprise of our lives when unwanted customs/VAT gets added onto the purchase price.

That being said I've been digging around for some time, and recently found a little guide on the SARS website, listing the import duties payable when goods are imported.
I am pleased to say that I am finally satisfied (enough) that I should not have to pay import duties when purchasing a guitar. (Yes guitars only for now).
It seems Chapter 92 of Schedule 1 No 1 to the Customs and Excise Act of 1964 refers to guitars as "stringed instruments", and states that the guitar, and accessories like a case it comes in are excempt for import duties.

http://www.sars.gov.za/home.asp?pid=2630 (if anyone want to also have a look - check chapter 92 of Schedule 1 no.1)

That gave me some comfort about the issue. (Although you cannot escape the VAT - so that you will pay.)

Ok But I though there was no V.A.T or duty on second hand goods,
who decides if its second hand or not?
as there is always some sort of value amount on the customs declaration slip stuck on the item?

Reinhard

kapepper wrote:
Reinhard wrote:
Brentcgp wrote: Shipping a guitar now days will cost you in the region of $800+ usd
It only ever makes sense if you buying something like a PRS, CS Fenders, Suhrs etc

You will only ever pay VAT, there is NO DUTY on anything guitars or effect pedals etc, or microphones..
I paid duty on the Amps.... but they pretty special and amps are not exactly something 'worth' importing, unless you want to drop R10k just to get them to you ☹ ?

I dont use local guitar shops purely because I never have to get in my car and put up with them, out of stocks, negotiating prices which are always marked to high, there are better prices overseas with shipping and VAT on top of that still.
I have imported 2 amps, 2 guitars, probably around 40 effect pedals, cables, strings, capos, everything is from the USA..
The one time I used a local supplier for an effect pedal he ended up disappearing with my money and its been a nightmare to get it back...
So I say go overseas, buy it all... I have a better customer relationship with guys in the USA than any local guitar shops...
\ have never ever had an issue (touches guitar) ?
I haven't ordered lately, but I have never paid more than $300 for shipping.
Forum member Nick recently imported a guitar from thomann.de and his shipping was 50 euros.
If you get someone asking $800 for shipping I can assure you you will find someone willing to ship a similar guitar insured for a lot less.

On a side note, Ceriatone will ship a amplifier head for $120 and I was only hit with VAT this side. I am glad I didn't hear your Swart amps Brent, last thing in the world I need now is GAS ?

thanks! Which shipping company is this becaus if i ask on ebay auction, all sellers say they cant ship because of size restrictions through USPS....

Sorry for the late reply. I think it may have been USPS on guitars. I remember Fedex charging more though.

AlanRatcliffe

exsanguinator wrote: Ok But I though there was no V.A.T or duty on second hand goods,

No VAT on local second-hand goods. There is on imported goods.

exsanguinator wrote: there is only an amount payable..not a breakdown whether its import duty,V.A.T or both.
Can I ask for one?

With a courier, yes. With SAPO, more bother than it's worth - they send it back to SARS and you have to go and collect from SARS directly and query it.

Anyway, VAT is always 14% on value of good (before shipping), so it's easy to work out how much is VAT and the rest is duties and clearance charges.

Reinhard wrote: Sorry for the late reply. I think it may have been USPS on guitars. I remember Fedex charging more though.

FedEx clearance fees are high (they have their own in-house clearance centre) and they also charge a disbursement fee. IME, They are also more likely to charge you unnecessary import duties (until queried).

thelickthief

I'm an accountant too and have imported 3 guitars and 1 amp from the USA during the past 18 months.

The most I paid for shipping was $440 August 2011 for my Gibson Historic LP, +VAT @14% (based on the US$ value of the guitar x US/ZAR Ex rate + 10%)
That was the norm with all 3 guitars plus the amp if I recall.

With the ever increasing fuel price, you can expect to pay more. I was recently quoted $560 for a ES335 and $800, also for a ES335

Jack-Flash-Jr

Musiciansfriend was recently doing free shipping to SA for used items over USD500 - brilliant deal if you got there on time. It's worth checking in every now and then to see if it pops up again.

RJN

Jack Flash Jr wrote: Musiciansfriend was recently doing free shipping to SA for used items over USD500 - brilliant deal if you got there on time. It's worth checking in every now and then to see if it pops up again.

Geepers !

Then I wouldn't mind to bring one of these over :

http://www.musiciansfriend.com/guitars/fender-american-deluxe-stratocaster-v-neck-electric-guitar

selbydoodl

I either bring in or import most all of my stuff.

Whilst I am lucky to import various stuff for a living and therefore include things like amps, spekers and guitars in the container.

On the occasions that I have brought in a guitar, I have never paid more than $165 for the cost.

That said, of course you will have to also pay the VAT.

emiloff123

Thank you for this info, Theuns. I remember back in 2005 there was a big import duty on a R guitar I bought for Americsa

Thank you for that reminder Theuns. I looked back on the invoice and final breakdown documents from UPS back in 2006 for a Martin accoustic guitar I bought from Elderly Instruments in America and it said Duty Free.
Vat was far less then, but the Freight charge was $360 dollars for a $499 dollar guitar, quite a ripoff in my view. I am going to buy a Hofner violin style bass guitar, (made in China) but not from ripoff America, rather from Thomann, GAK or MUSICSTORE.COM in Germany, who charge far less than America for shipping. I tried to buy from China last year (free shipping) but I received a message and my money back after 2 months, saying Covid restrictions prohibit them from shipping to South Africa. From DhGates. I contacted Aliexpress last week, and they say their agents are not shipping here either.

V8

emiloff123 Covid restrictions prohibit them from shipping to South Africa. From DhGates. I contacted Aliexpress last week, and they say their agents are not shipping here either.

Super interesting, thanks for the update!

Wondering how the re-sellers (Blackbeards Den, Valley Music, Thundercloud, etc..) here are getting stock from China? I saw a article on BussinessTech on cheap projectors and they had positive experiences getting bits shipped from china.

Perhaps it's seller dependent?

emiloff123

Yes, I have heard from other people SA that they have been getting other goods from China online. I began to think that this Hofner Ignition Violin style bass is in such demand that the Manufacturer cannot keep up and supply every customer. So they choose certain countries to fob off with untrue excuses. To keep up their good name.

JGP

An important note is that USPS while cheap is actually just a postal; service, once it arrives in SA it is handled by our postal service. Good luck on receiving your item within 6 months, in one piece or indeed at all. The same applies to any postal based service. UPS and DHL are door to door couriers, no post office but expensive.
Musical instruments and instruments in a case carry no duty. A case or bag alone is treated as luggage and carries over 35% duty plus high shipping costs which is why cases and bags are so expensive here.
Amplifiers and speakers also carry duties plus for the importer in SA amplifiers require a letter of authority based around an expensive and unnecessary safety test procedure which cost also has to be recovered from the customer.

emiloff123

Whewww! Thank goodness I realize that I will be using UPS, AND NOT USPS for buying a Hofner violin style guitar from the UK. I have sent payment via my order and it will be delivered to my brother living there to send to me via UPS. The music Company does not deliver to South Africa. I have registered with UPS and can pay and instruct them to collect and send to me. What a mission to find a Company that has stock and will deal with me! It will take two business days to show in their account, hoping stock will have not run out, and they will heed my proof of payment attachment an email I sent. And my appeal to keep one for my order.