Temu and Shein and New S.A. Tax Laws

The South African Revenue Service (SARS) has introduced new tax regulations to level the playing field for local retailers, effective July 1, 2024. The changes aim to close a tax loophole exploited by international e-commerce sites like Temu and Shein, which previously avoided higher taxes by breaking up large orders into smaller packages. The new regulations standardize import duties for clothing items, resulting in higher prices for consumers but a more equitable competitive environment for local retailers. This move is welcomed by local retailers, who believe it will support local production and jobs, and is part of the government's commitment to confronting online retail platforms that undermine locally-produced goods.