Temu and Shein to become less attractive following tax crackdown

Daniel Puchert

Daniel Puchert

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South Africa's Temu and Shein tax crackdown

Law firm Webber Wentzel believes the import duty changes implemented by the South African Revenue Service (SARS) in the coming months will make importing small, low-value items less economically attractive.

It also says the move will have a marked impact on South African consumers who frequently shop through international online stores like Shein and Temu.
 
Just ordered 2 smartwatch straps from Shein they were R22 each even with normal tax they come in far cheaper than local.

Locally its R200-R300 for the same one.

On Shein 3 x screen protectors is R25 where locally they R150 for 1
 
Basically increasing taxes for consumers under the guise of "think of the children" like logic.

EDIT: Why are consumers not enraged by this abuse by SARS?
We should be protesting.
 
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Daniel Puchert said:
South Africa's Temu and Shein tax crackdown

Law firm Webber Wentzel believes the import duty changes implemented by the South African Revenue Service (SARS) in the coming months will make importing small, low-value items less economically attractive.

It also says the move will have a marked impact on South African consumers who frequently shop through international online stores like Shein and Temu.
Click to expand...

On principal I would still rather buy from Shein or Temu. If the item is cheaper locally because of this protectionist action by SARS, fat chance, then I merely won't buy it.
 
CrypticZA said:
Just ordered 2 smartwatch straps from Shein they were R22 each even with normal tax they come in far cheaper than local.

Locally its R200-R300 for the same one.

On Shein 3 x screen protectors is R25 where locally they R150 for 1
Click to expand...
Family member did the same and got two of one side of the strap lol. Spend weeks waiting for the order and then it's wrong anyway.
 
Bernoldus Niemand said:
Family member did the same and got two of one side of the strap lol. Spend weeks waiting for the order and then it's wrong anyway.
Click to expand...

Just log a return and get the money back... have had 2 orders with items that were wrong/messed up.

No more than a day later the money was back in my account.
 
ToxicBunny said:
Just log a return and get the money back... have had 2 orders with items that were wrong/messed up.

No more than a day later the money was back in my account.
Click to expand...
I had earbuds that the one earbud's battery lasted like half the duration and wouldn't charge to 100% i logged a ticket and got a response in 1 hour and following day money was in my account they said i could keep them as well
 
VAT is usually calculated on the value of the goods and not insurance/shipping to get it to you.
The exporter should deduct local tax when exporting to avoid double taxation. Some exporters overseas don't do that.
 
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rh1 said:
JUst R86 tax on a R500 order.

Still cheaper than buying from local retailers, other times Temu, have stuff our local retailers dont stock.
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Yup really does seem to be on what you ordered
 
They've just created more work for them, people won't be ordering less as stuff won't be much more expensive. I can just see them invoicing every single item of an order now. :ROFL:

“Customs duties are calculated based on the declared value of the goods, including any applicable shipping costs and insurance. SARS has adjusted the duty rates to make importing small, low-value items less economically attractive,” they said.
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Since when? Duties are established based on the type of goods. So if I pay R100 for a jacket but R200 for an earphone but the shipping is R150 what are the duties?
 
Swa said:
They've just created more work for them, people won't be ordering less as stuff won't be much more expensive. I can just see them invoicing every single item of an order now. :ROFL:


Since when? Duties are established based on the type of goods. So if I pay R100 for a jacket but R200 for an earphone but the shipping is R150 what are the duties?
Click to expand...
Your example should work out like this (duties as per SARS tariff book (https://www.sars.gov.za/legal-lprim-ce-sch1p1chpt1-to-99-schedule-no-1-part-1-chapters-1-to-99/):

Jacket (assuming cotton or wool) - Tariff code 6103.3 - 45% duty - R145
Earphones - Tariff code 8518.30 - 0% duty - R200
VAT on 110% of value including duties: R345*1.1*0.15 = R56.93

Estimated cost excl shipping: R345 + R56.93 = R401.93

The change is that there would have been no duty here in the past as both items were under the R500 de minimus limit - you would probably only have paid the VAT on 110% of the value.
 
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