Income tax on drop-shipping

Bertus says:
19 June 2020 at 9:52

I am currently doing drop-shipping, the products which come from over sea, so I would like to know what income tax would I need to pay. What do I need to know about this if I am doing it for the first time? Could you kindly share tax material with me which I can use to also work my way through this.

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

TaxTim TaxTim says:
19 June 2020 at 15:58

You will need to submit a tax return and declare this income and the applicable qualifying expenses on your income tax return. The profit/loss will be included in your total taxable income on which tax will be calculated as per individual tax tables.

You are trading in your personal capacity, therefore you are 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?

Submit your tax return right here!

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.