NCC and SARS Join Forces to Crack Down on Non-Compliant Imports and Tax Evasion
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The National Consumer Commission (NCC) and the South African Revenue Service (SARS) have signed a Memorandum of Understanding (MoU), announced on 6 May 2026 in a Media Release to work together on tackling non-compliant goods entering the country and the tax evasion that often goes with them.
The MoU focuses on stopping non-compliant imports, improving tax and customs compliance, and protecting consumers from unsafe or substandard goods. The two entities will run joint investigations, share information, and coordinate public awareness campaigns.
What the MoU covers
A key focus is section 26 of the Consumer Protection Act, which deals with invoicing. The NCC and SARS will work together on cases where businesses fail to issue invoices, or issue invoices missing legal requirements such as VAT registration details. The NCC will also have a clear channel to report suspected tax and customs offences to SARS, including traders who have not registered for tax or customs at all.
Two sectors get particular attention: Clothing, Textile, Footwear and Leather (CTFL), where customs duty evasion has been a persistent problem, and e-commerce imports, where mislabelling and non-compliance remain high risks.
What the leaders said
SARS Commissioner Dr Johnstone Makhubu said the partnership strengthens SARS's ability to detect and act against non-compliant imports and tax evasion. He linked it to the President's National Illicit Economy Disruption Programme, announced in SONA, which brings together state agencies and the private sector to disrupt illegal trade. Acting NCC Commissioner Mr Hardin Ratshisusu said the MoU reinforces the NCC's mandate to protect consumers and will improve accountability across the value chain.
Why this matters for accountants
For accountants and tax practitioners, this MoU signals that compliance risks at the intersection of customs, VAT and consumer protection law are about to get a lot more visible. A few things to flag to clients:
Invoice compliance is now a cross-agency issue. A section 26 slip-up under the Consumer Protection Act can now be routed straight from the NCC to SARS, turning a consumer law issue into a tax audit trigger.
Importers face tighter scrutiny. CTFL and e-commerce clients should expect more joint investigations and less room to rely on gaps between regulators.
Unregistered traders are particularly exposed. The NCC now has a direct route to flag businesses that have not registered for tax or customs. Registration should be treated as urgent, not optional.
Document hygiene matters more than ever. Clean invoicing, accurate customs declarations and proper VAT records are the simplest defence when two regulators are comparing notes.
This is part of a broader whole-of-government move toward shared enforcement, and unlikely to be the last such agreement. Compliance conversations with clients should now cover tax, customs and consumer protection together, not as separate silos.