Countless South Africans have embraced the extensive variety and unbelievably low prices available via online platforms, Temu and Shein. This, however, is set to change on Monday, 1 July 2024.
Up until now, consumers benefitted from a low 20% import duty on orders under R500 without VAT, allowing financially constrained South Africans to purchase clothing and other items at a fraction of the cost compared to retail stores and other e-commerce platforms.
This will now change, with local online shoppers facing a 45% import fee plus VAT and other duty fees on all clothing purchases, regardless of the order’s value.
This change follows a recent announcement by the South African Revenue Services (SARS) regarding international online retailers offering low-cost retail options for delivery to South Africa. The rise of platforms like Temu and Shein has prompted SARS and Customs to alter their handling of small orders entering the country, as these businesses allegedly exploited a tax loophole in the current system.
Previously, parcels valued under R500 shipped to South Africa were subject to significantly lower customs duties. The SA Accounting Academy explained, “The ‘de minimis rule’ allowed these companies to get clothing parcels under R500 through customs with a 20% import duty and 0% VAT. Many South African companies accused Shein and Temu of abusing this rule by breaking up larger orders into smaller quantities and packages.”
From 1 July 2024, clothing items imported into the country valued at less than R500 will incur the same duties as larger orders. Clothing imports above R500 in South Africa will be subject to a 45% import duty plus value-added tax (VAT).
While SARS aims to prevent international companies from exploiting the tax system, an online petition has been launched to contest this decision. With just over 19,000 signatures, the petition argues that South Africans purchased from Shein and Temu because they could not afford clothing from local businesses, and the primary appeal of these online retailers was their affordability.
The petition further states, “Clothing is a basic necessity and a fundamental aspect of daily life. Access to affordable clothing is essential for maintaining dignity, professionalism, and social inclusion. Many individuals rely on clothing parcels for affordable options, especially in low-income households and underserved communities. Increasing taxes on these parcels would disproportionately burden those already facing financial hardships.”
To view the petition, which urges SARS to refrain from increasing taxation on clothing parcels and instead focus on policies that promote affordability, accessibility, and prosperity for all South Africans, click here.
With Newcastillians and their fellow South Africans now expected to pay more when shopping on platforms such as Shein and Temu, what are your thoughts?
Share your views in the comments section below.
9 Responses
We are buying from temu and shein we can afford. Clothes from South Africa retailers are very expensive. Example, a coat from truworts is R1600,while in temu or shein it’s R500 or less.
45%vat or not,we will still buy there, maybe it’s time that our retailers should also go down with their prices, but if not,truworts will never see me entering their store, affordability is the problem.
How pathetic Sars arre.The consumer is paying .more on import taxes,but Sars is cashing in.This move will still not stop the customers from buying from their loved online shopping companies..It is a monet making racket with a smoke screen.
they dont want us to pay less for more stuff they try to stop us to buy from temu and shein
I find this increase totally ridiculous. If the Chinese shops here in SA sold these items then we would buy it here. They don’t sell clothes like this here. Where would these taxes go to with all the crime & fraud in SA? The roads & schools are in an appalling state. I doubt this extra money would help. The Rand/Dollar situation is not getting any better.
The ordinary consumer is being penalized for making purchases that are budget wise…But retailers are purchasing from Shein and Temu and reselling those clothing items with an exorbitant mark up to the very same cash strapped consumers.Who is really being disadvantaged here?The consumer!!!
If Edgar’s milady’s truworths and other retailers in south africa bring their prices down we will support them .their prices are ludicrous. How can anyone compare shein and temu. Trust me even with 46 percent they still worth buying from as our retailers are killing us with huge prices. And you get stuff from them you don’t get here it’s that simple
This increases is really absurd. We all know how crazy expensive things are in South Africa. Shein and Temu is also used by students who can’t afford to go the the store and buy clothes and other essentials because they are expensive. SARS should think about both adults and students. Other people might be buying the clothes and other things in order to help the needy.
45% or not i will still buy from Temu it is budget friendly .
Retailers sells clothing at ridiciously high prices so i will buy where it suits me the best
I will continue to buy from Temu due to the variety and style of clothing not available in SA at an affordable price.