SARS has increased customs duties on imports from popular online retail platforms Shein, Temu, Amazon, AliExpress, and many more. Effective 1 September 2024, the new regulations have changed the customs duties and import VAT calculation on all cleared carts š. How it works:
Import VAT is now added to the current 20% flat rate customs duty. Import VAT = (total value of the goods + 20% customs duties + 10% upliftment on the customs duty value) * 15%. By 1 November 2024, the 20% flat rate will be restructured to align with the World Customs Organisation (WCO)ās 4 categories and applicable tariff thresholds.
Until recently, consumers and foreign online retailers have benefitted from the āde minimis ruleā (imports less than R500 were subject to standard customs duty of 20% on the value of the goods excluding VAT).
In stark contrast, local retailers pay up to 45% customs duty PLUS 15% import VAT on imports. (Connect the dots on pricingā¦)
SARS hopes the changes will streamline the customs process, encourage spending with domestic businesses and make importing small, low-value items less economically attractive. The move also hopes to even out market inefficiencies, cluttered supply chains and customs admin while increasing competitiveness domestically.