Major inconsistencies in how much tax Temu charges in South Africa

Jan

Jan

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Temu and Shein tax chaos in South Africa

The South African Revenue Service (Sars) still plans to start implementing tax changes that could significantly increase the prices of imported goods from Chinese retailers Shein and Temu.

However, figuring out how these taxes will be calculated remains a bit of a mystery, as Sars has yet to publicly pronounce what its de minimis amount is for duty-free imports, if indeed it will have one.
 
Clearance/Disbursement/Processing/Fuel levy/etc might play a role. Surely buffalo can provide a itemized breakdown of the duties due/paid?
 
It's been a while since I was doing maths but the effective tax rate calculations look way off:
Order valueTotal tax dueEffective tax rateReal effective tax rate?
R212.00R229.0034%229/212*100 = 108%
R71.84
R137.65
60%
137.65/71.84*100 = 192%
R1,308R155.5512%155.55/1308*100 = 12%

What am I missing?
 
"These high taxes are implemented to protect the Government officials businesses and family businesses."

ftfy
 
1730393132539.png

Effective tax rate = Total tax due/Order Value * 100
Example VAT calculation 15/100 * 100 = 15%
 
To be honest, importing from China has always been a gamble. Because tax is paid in the declared amount and not the actual cost of the item. For example, when I used to import my phones, they used to put Phone Cover on the invoice and some stupid low amount. So instead if paying tax on a R3000-R4000 phone, you paid tax on a R400 "cover".

But yes, someone is having a lekker holiday on these "taxes" as they going the opposite way.

I smell corruption and incompetence.
 
km2 said:
It's been a while since I was doing maths but the effective tax rate calculations look way off:
Order valueTotal tax dueEffective tax rateReal effective tax rate?
R212.00R229.0034%229/212*100 = 108%
R71.84
R137.65
60%
137.65/71.84*100 = 192%
R1,308R155.5512%155.55/1308*100 = 12%

What am I missing?
Click to expand...
This guy....
MFsqcBSoOKPbjtmvWz (2).gif
 
km2 said:
It's been a while since I was doing maths but the effective tax rate calculations look way off:
Order valueTotal tax dueEffective tax rateReal effective tax rate?
R212.00R229.0034%229/212*100 = 108%
R71.84
R137.65
60%
137.65/71.84*100 = 192%
R1,308R155.5512%155.55/1308*100 = 12%

What am I missing?
Click to expand...
Writer thought he's Elon Musk and can smoke on a Thursday. First the math, Hanno.
 
Don't forget that when you import, you actually pay an additional percent on the vat amount.
I.E. 16%
 
Petec said:
Don't forget that when you import, you actually pay an additional percent on the vat amount.
I.E. 16%
Click to expand...
Almost, but not quite. VAT is calculated at 15% of 110% of the invoice price, which works out to 16.5%.
 
RedViking said:
To be honest, importing from China has always been a gamble. Because tax is paid in the declared amount and not the actual cost of the item. For example, when I used to import my phones, they used to put Phone Cover on the invoice and some stupid low amount. So instead if paying tax on a R3000-R4000 phone, you paid tax on a R400 "cover".

But yes, someone is having a lekker holiday on these "taxes" as they going the opposite way.

I smell corruption and incompetence.
Click to expand...

You should have been a good citizen and contacted SARS to ask them where to deposit the outstanding vat/duty :)
 
Not really surprised the South African government is a predatory institution based solely on how much they can extort from their slaves.
 
Ah, Broadmedia's daily soapy ****. Temu and Shein.

Fck the local industry. Everyone is reselling Shein clothes at a premium anyway.

The cost of business in this country is too high. Fck that.
 
I think whats missing in these examples is the clearance fees.

You order R1000 item - clearence fee R50 + customs
You order R70 item - cleareance fee R50 + customs

Kinda distorts the custom figure quoted.
 
So the new taxes are not enough of a deterrent, which means it's basically a scam for government to get more money.
 
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