If you shop at Shein and Temu, you face increased costs due to new tax regulations from SARS, intended to create a level playing field for local retailers. Here's what you need to know.
Online shopping in South Africa has just become more expensive. SARS has introduced new tax regulations for imports from foreign online platforms, aiming to protect local industries and generate revenue. These changes affect consumers and retailers alike, with revised customs duties, import VAT and de minimus rule changes.
Taxes up from November
Since November, consumers have been grappling with uncertainty due to recent changes in online shopping taxes. Two regular online shoppers shared their startling experiences.
Wendy Dondolo, a third-year student at Cape Peninsula University of Cape Town, recently incurred a surprising tax and customs fee on her R300 clothing purchase from Shein: "I ordered for R1,300 then my customs were R500 ... that's almost 50%."
Dondolo's previous strategy was splitting orders to minimise customs fees, but she now doubts its effectiveness. "Normally the strategy was to split your order into two orders to pay less customs but now I don't think the strategy will work because you are still going to pay more customs even if you split your order," she told Daily Maverick.
Similarly, Nwabisa Gocini, who has been helping her neighbours with online shopping free...