Taxman coming for Temu and Shein

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Taxman coming for Temu and Shein
Mark GoodgerMichael LawrenceNaspers
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The South African Revenue Service is facing backlash from local couriers over its decision to implement an import duty of 45% plus VAT on all clothing.

The South African Revenue Service will implement an import duty of 45% plus VAT on all clothing from 1 July 2024 to address the imbalance between platforms like Temu and local retailers.

The retailers claimed this puts them at a disadvantage, as they are still forced to pay the 45% import duty plus VAT for all clothing imports. “In respect of high-volume, low-value consolidated shipments, it appears apparent that Shein and Temu have utilised this provision,” said Goodger. “It is not a move directed at depriving any particular community of receiving that low-value product,” said Goodger.

“We’re reaching out to inform you of a delay in your order due to a surge in orders,” it said in a notice sent to customers.

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Mark Goodger Michael Lawrence Naspers Shein South African Revenue Service (SARS) Takealot Temu Business

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