Tax and SARS knowledge base
How does a tyre manufacturer account for the environmental levy?
What records support a South African environmental-levy return for tyres?
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Direct answer
A registered or licensed person must identify tyres covered by the current environmental-levy tariff, account for levy-bearing manufacture or import events and apply the rate effective for the relevant date. The SARS account should reconcile quantities and mass where the rules require it to production, stock, import and sales records.
Retreads, carcasses, components and complete tyres should not be grouped without checking their classification.
What this means in practice
Control product master data by tariff classification, size, mass and effective date. Supplier descriptions rarely contain enough information for a levy decision.
Use verified mass data and retain the method used where product ranges contain variants.
Step-by-step
- Confirm registration, licensed activities and reporting period.
- Classify each tyre product under the current schedule.
- Verify unit mass or other prescribed measurement.
- Reconcile opening stock, manufacture or imports, removals and closing stock.
- Separate supported exports, rebates or exclusions.
- Apply the current rate to the levy base.
- Complete, approve and submit the account.
- Pay and retain the product-level calculation.
Documents and records to keep
- Tariff classification and product master.
- Mass specifications or measurement evidence.
- Production, import and stock schedules.
- Removal and export documents.
- Levy account and payment proof.
Important limits and exceptions
Do not apply a current rate to earlier transactions without checking the effective date.
Classification and measurement errors can affect every unit in a product line and should be corrected at source.
When to get tailored advice
Get specialist help for retreads, imported components, new tyre designs, rebates or classification uncertainty.