Apply for an Advance Payment Notification (APN) Number

An APN number is the unique reference number generated by the South African Revenue Service (SARS) after an importer successfully submits an Advance Payment Notification (APN) for a qualifying advance payment for imported goods.

The APN process is designed for situations where a South African importer needs to make a payment to an overseas supplier before the imported goods have arrived in South Africa. The notification provides SARS with information about the intended payment and the goods associated with the transaction.

Once the Advance Payment Notification has been successfully submitted through the applicable SARS eFiling process, SARS generates an APN reference number. This reference is important because it allows the transaction to be identified when the payment is processed through an authorised dealer, such as a bank.

An APN number should not be confused with a customs code, import permit, VAT number, tax clearance certificate or company registration number. It serves a specific purpose within the process for qualifying advance import payments.

For businesses importing products, machinery, equipment, stock or other goods from international suppliers, understanding when an APN is required can help prevent unnecessary delays when arranging international payments.

If you are unsure whether your payment requires an APN, SACORPREG can assist you in understanding the application process and the information that may be required.

APN stands for Advance Payment Notification.

The term refers to the notification submitted to SARS when an importer intends to make a qualifying advance payment to an overseas supplier for goods that will be imported into South Africa.

The purpose of the notification is to provide information about the proposed transaction before the advance payment is made. This allows the transaction to be associated with the relevant import and payment information.

Once the notification has been successfully submitted, SARS generates a unique APN reference number. The importer can then provide this reference to the authorised dealer handling the payment.

Because APN is specifically related to advance import payments, it is important not to assume that every international payment or every import automatically requires an APN. The requirement depends on the nature and value of the transaction and the applicable SARS rules.

An APN may be required by a South African importer that intends to make a qualifying advance payment to a foreign supplier for goods that will subsequently be imported into South Africa.

For example, a South African company may order manufacturing equipment from a supplier in China and be required to pay the supplier before the equipment is shipped. If the transaction falls within the applicable APN requirements, the importer would need to complete the Advance Payment Notification process.

The requirement can apply to businesses across different industries, including manufacturing, construction, retail, wholesale, mining, agriculture, technology and engineering.

However, simply purchasing something from another country does not automatically mean that an APN is required. The circumstances of the payment, the applicable BOP category and the value of the payment must be considered.

Businesses should therefore determine whether their specific transaction falls within the APN requirements before attempting to make the payment.

SARS currently provides for an APN requirement for qualifying advance import payments of R100,000 or more falling under the applicable Balance of Payment (BOP) category and sub-categories.

The threshold is important because it determines whether certain advance import payments fall within the APN process. However, businesses should not rely on the amount alone when determining whether an APN is required.

The nature of the payment and the applicable BOP classification also matter. Certain transactions may be treated differently depending on their circumstances.

For this reason, an importer making a large payment to an overseas supplier should establish whether the payment is classified as a qualifying advance import payment before instructing the bank to process the transaction.

SACORPREG can assist businesses with understanding the APN process and preparing the information required for the application.

An APN is submitted electronically through the SARS eFiling system.

The importer needs to provide the information required for the Advance Payment Notification. This information relates to the importer, the intended payment and the goods that are expected to be imported.

The information must be entered accurately because the APN becomes associated with the intended advance payment and subsequent import transaction.

Once the notification has been completed, it is submitted electronically. SARS processes the notification and, where the submission is successfully completed, generates an APN reference number.

The APN number can then be provided to the authorised dealer responsible for processing the international payment.

Although the application itself is electronic, businesses should prepare their transaction information carefully before starting the process. Incorrect or incomplete information can result in additional work or delays.

SACORPREG can assist businesses that are unfamiliar with the APN process and want help preparing for their submission.

The APN reference number can generally be generated after the Advance Payment Notification has been successfully submitted through the SARS system, provided that the required information has been correctly supplied and the notification is successfully processed.

This means businesses should not necessarily expect the APN process to involve a long manual waiting period.

However, the overall time required by an importer can depend on how prepared the business is before submitting the notification. Having incorrect importer information, incomplete transaction details or uncertainty about the payment classification can create additional complications.

For this reason, it is advisable to prepare the relevant information before beginning the application.

If your business has an international payment that needs to be made urgently, it is better to establish whether an APN is required before instructing your bank to process the payment.

If your payment is a qualifying advance import payment that falls within the applicable SARS requirements, you should obtain the required APN before the payment is processed.

The APN process is specifically designed to notify SARS about qualifying advance payments relating to goods that will be imported into South Africa.

The APN reference is also relevant to the authorised dealer handling the payment. For qualifying transactions, the authorised dealer needs to validate the applicable APN information before processing the advance import payment.

This is why businesses should not wait until the payment has already been rejected or delayed by their bank before investigating whether an APN is required.

Planning the APN process before making the payment can help the importer provide the correct reference to the authorised dealer and keep the transaction moving.

Whether an APN is required depends on the nature of the international payment.

Not every international payment requires an APN. The APN requirement applies specifically to qualifying advance import payments under the applicable SARS rules.

If your transaction falls within the APN requirements, the authorised dealer will require the relevant APN information before processing the qualifying advance import payment.

If your payment does not fall within the APN requirements, an APN may not be applicable.

Because international payments can involve different Balance of Payment categories and regulatory requirements, it is important to establish the correct classification rather than assuming that every foreign payment requires an APN.

SACORPREG can assist businesses in understanding the APN process and preparing for the required submission.