Drop-shipping and taxes



Agnieszka says:
2 May 2020 at 12:01

I am currently running a drop-shipping business on Shopify which makes around R83 000 in sales (that's about R45000 profit) per year. As it is a small amount of money at this moment, do I still need to register my business at this stage and start paying taxes? Also, I am ordering small products from China and sending them to customers all around the world. I am not sure how i should go about the taxes in this case. Could you assist me with that?

This entry was posted in Tax Q&A and tagged , , . Bookmark the permalink.

TaxTim TaxTim says:
4 May 2020 at 7:30

Yes, you will need to submit a tax return and declare this income and the applicable qualifying expenses on your income tax return.

You are trading in your personal capacity, therefore you are also required to register for and submit provisional tax returns.

Please refer to our following blogs & decision trees for more information: Do I need to file a tax return?, Am I a Provisional taxpayer? and What is Provisional Tax? How and when?




Do your Tax Return in 20 minutes or less!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.