JHB 
The South African Revenue Service (SARS) is extending its compliance net, and this time it’s Customs and Excise that are set to join the Voluntary Disclosure Programme (VDP). For importers, exporters, and manufacturers, this development represents both a warning and an opportunity.
The VDP has long been a tool to encourage taxpayers to come clean on past transgressions by offering relief from penalties and criminal prosecution. Its extension to Customs and Excise means businesses with historic non-compliance in this space will soon have a structured way to regularise their affairs.
Why this matters
The Customs and Excise environment is complex. Businesses frequently deal with:
Misclassification of goods
Under-declaration of values
Incorrect tariff codes
Duty or excise underpayments
These errors can expose companies to significant penalties, interest charges, and even criminal action. With Customs and Excise set to join the VDP, businesses that may have unresolved compliance issues now have a limited-time opportunity to disclose before SARS’s enforcement action intensifies.
What the VDP offers
The Customs VDP will provide similar benefits to the existing programme under the Tax Administration Act:
Waiver of certain administrative penalties
Immunity from criminal prosecution (provided the disclosure is voluntary, complete, and accurate)
However, taxpayers must still pay the actual duties and taxes owed, plus interest where applicable. The relief applies only to penalties and criminal consequences, not to the principal amounts.
Risks of inaction
Failing to take advantage of the VDP leaves businesses vulnerable. SARS’s customs enforcement capabilities are expanding, with more sophisticated data analytics and cross-border cooperation increasing the chances of detection. Once SARS uncovers non-compliance, the option to voluntarily disclose is lost, and full penalties will apply.
Preparing for disclosure
Businesses considering VDP relief should:
Conduct a comprehensive compliance review of customs and excise processes
Quantify potential exposure from past errors
Gather supporting documentation to back their disclosure
Seek professional guidance from their MMS lead to structure submissions correctly
Given the technicalities involved, a professional review ensures the disclosure is both accurate and defensible.
Final thoughts
The extension of the VDP to Customs and Excise underscores SARS’s determination to close revenue gaps and enforce compliance across all tax areas. For businesses with unresolved customs issues, this is a golden opportunity to clear the slate and move forward without the burden of penalties or prosecution.
At MMS Group, our tax experts can help your business review customs and excise compliance, quantify risk, and prepare a strong VDP submission. Reach out to us to protect your business and take advantage of this relief before enforcement catches up.