Shein, Temu prices to rise as SARS confirms 1 September tax crackdown
From 1 September, SARS will apply a flat 20% VAT in addition to its current 20% flat customs rate.
29 April 2024, Berlin: The Shein logo can be seen on a smartphone, while the Chinese online retailer's website is open on a laptop.
Stephen Grootes speaks to Etienne Vlok of the South African Clothing and Textile Workers Union (SACTWU).
(Skip to 3:14 for this one.)
The South Africa Revenue Service confirms it will implement interim tax changes from 1 September, impacting online retailers like Shein and Temu.
From that day, SARS will apply a flat 20% VAT customs duty on packages below R500 in addition to its 20% flat customs rate.
From 1 November, it will reconfigure the 20% flat rate in line with global guidelines and categories.
This follows concerns about foreign platforms exploiting tax loopholes when importing goods, especially clothing.
ALSO READ: Shein and Temu packages? 45% customs tariff hike still coming says SARS
“This is purely an interim step. It will bring a little bit of relief and some certainty, but that second step (November implementation) is the crucial one and for that we are looking for a decent import tariff..."
– Etienne Vlok, National Industrial Policy Officer – SACTWU
“If any of our major retailers imports clothing, they have to pay a 45% duty and then 15% tax on top of that. At the moment, it’s not the case with Shein, Temu, and other e-commerce online retailers… that playing field must be levelled.”
– Etienne Vlok, National Industrial Policy Officer – SACTWU
“Our industry is not the cheapest in the worldm, but we’re able to produce goods much quicker, and deliver them quicker to our customers in South Africa.”
– Etienne Vlok, National Industrial Policy Officer – SACTWU
Scroll up to the audio player to listen to the discussion.