SARS Introduces New Rules for Vehicle Owners

The South African Revenue Service (SARS) has announced significant new requirements affecting all owners and operators of foreign-registered vehicles crossing South African borders, representing a substantial shift in how the revenue service manages vehicle entry and exit at the country’s ports of entry. The measures, which carry meaningful consequences for those who fail to comply, also form part of a wider national response to the rapidly growing problem of illegally imported vehicles, a grey market that is costing South Africa billions of rand each year whilst undermining the competitiveness and sustainability of the domestic automotive industry.

Key Takeaways

• New declaration requirement from 1 June 2026: All foreign-registered vehicles must be declared through the SARS Traveller Management System (TMS) before entering or exiting South Africa, with temporary import permits valid for six months and multiple crossings.
• Non-compliance carries serious consequences: Vehicle owners who fail to declare or provide false information face enforcement action and prolonged border delays, while those who comply fully can expect a seamless crossing experience.
• Grey vehicle imports cost South Africa R8 billion annually: Illegal vehicle imports have more than doubled since 2020, with an estimated 50,000 unauthorised vehicles added to South African roads each year, posing significant risks to tax revenue, public safety, and the formal automotive industry.

The New Declaration Requirement

With effect from 1 June 2026, SARS requires all foreign-registered vehicles to be formally declared through its Traveller Management System, commonly referred to as the TMS, before those vehicles are permitted to enter or exit the country. This requirement applies universally to all foreign-registered vehicles crossing South African borders, regardless of the purpose of travel.

SARS Commissioner Johnstone Makhubu confirmed the new requirement, noting that the measure brings South Africa into alignment with internationally accepted customs practices. He emphasised that the move also forms part of the revenue service’s broader strategy to modernise border operations, improve overall compliance levels, and strengthen security at official ports of entry across the country.

Makhubu further noted that the new declaration process supports South Africa’s financial transparency obligations as well as its national security objectives, ensuring that goods, currency, and vehicles are properly declared and assessed before they cross the border.

How the New Temporary Import Permit System Works

Under the newly introduced system, foreign vehicles that are temporarily brought into South Africa will be eligible to receive temporary import permits. These permits carry a validity period of six months from the date of issue and are designed to accommodate repeated border crossings within that period, meaning that motorists will not need to reapply each time they enter the country during the permit’s active validity window.

SARS has confirmed that frequent travel for recognised legitimate purposes will not negatively affect the validity of a permit, provided that the permit remains active at the time of each crossing. Legitimate reasons for frequent travel that are recognised under the new system include:

• Work-related travel and commuting across borders
• Academic study and educational purposes
• Business travel and commercial activities
• Medical care and treatment abroad or within South Africa
• Other recognised legitimate personal or professional reasons

Travellers who hold an active temporary import permit should keep a printed or digital copy of the permit readily accessible at the border, as customs officials may request to view it during inspections.

Online Declarations and Border Assistance

While SARS encourages all travellers to complete their declarations online before arriving at a border post, recognising that this will facilitate faster processing and reduce queues, the revenue service has confirmed that dedicated officials will remain stationed at all ports of entry to assist travellers who are unable to complete the process electronically.

Makhubu was explicit that online declarations do not serve as a replacement for physical border controls. All travellers will still be required to present themselves in person for customs verification and inspections wherever this is considered necessary by border officials.

The Grey Vehicle Problem in South Africa

The tightening of border controls arrives against the backdrop of mounting concern over South Africa’s expanding grey vehicle market. Grey vehicle imports refer to used vehicles that enter the country through unauthorised channels, deliberately bypassing official dealership networks and circumventing the regulatory requirements that apply to vehicles sold through formal channels.

According to data from the National Association of Automobile Manufacturers of South Africa, known as Naamsa, these illegal vehicle imports cost the national fiscus up to R8 billion annually through the evasion of import duties, value-added tax, and a range of other applicable taxes and levies.

The scale of the problem has grown dramatically in recent years. The R8 billion annual loss represents an increase of more than 110 per cent from the R3.8 billion that was estimated to be lost in 2020, meaning the problem has more than doubled in just a few years. The loss of this revenue carries significant consequences for the broader public, as it directly reduces the funds available for critical spending on infrastructure, education, healthcare, and other essential public services.

Key Financial Impact at a Glance

Year	Estimated Annual Revenue Loss	Change
2020	R3.8 billion	Baseline
2026	R8 billion	+110% increase

Scale of the Problem on South African Roads

Industry bodies have raised serious concerns about the sheer volume of vehicles entering the country through unauthorised channels. The National Automobile Dealers’ Association, known as NADA, estimated last year that approximately 50,000 illegal vehicles are added to South African roads every single year, despite the regulations that exist specifically to prevent this from happening.

NADA further revealed that over the five-year period preceding its report, no fewer than half a million vehicles bearing foreign registration plates had been recorded operating within South Africa’s borders. To contextualise this figure, the official vehicle parc in South Africa totals approximately 13 million registered vehicles.

Based on NADA’s figures, as many as 4 per cent of all vehicles currently on South African roads could be grey imports. Naamsa’s own assessment is even more concerning, with the industry body estimating that illegally imported second-hand vehicles may account for roughly 7.5 per cent of the country’s total vehicle parc.

Safety and Environmental Risks

Beyond the substantial loss of tax revenue, NADA has warned that many grey import vehicles do not meet the same quality, safety, and environmental standards that are mandatory for vehicles sold through formal dealerships. The association noted that these vehicles directly undermine the viability of the formal vehicle retail market, where licensed dealerships are required to comply with stringent quality controls, safety standards, and environmental regulations as a condition of operating.

Conclusion

The introduction of mandatory declarations for foreign-registered vehicles marks a decisive step by SARS in closing the loopholes that have long allowed illegal vehicle imports to drain billions from the national fiscus. By modernising border operations through the Traveller Management System and enforcing stricter compliance measures, the revenue service is not only protecting legitimate tax revenue but also safeguarding the integrity of South Africa’s formal automotive industry and the safety standards that consumers depend on. Vehicle owners travelling across South African borders are strongly advised to familiarise themselves with the new requirements well ahead of the 1 June 2026 implementation date to ensure a smooth and uninterrupted border crossing experience.