Upcoming VAT changes could raise costs for Temu and Shein shoppers

IN A move likely to affect thousands of online shoppers, the government is planning to scrap the VAT exemption on low-value imported goods, including items from popular online retailers like Shein and Temu.

- MTHOBISI NOZULELA

This change forms part of the 2025 Draft Taxation Laws Amendment Bill (TLAB), recently published by the National Treasury and the South African Revenue Service (SARS) for public comment.

“It is proposed that the current tax-free limit on imported goods to be removed, meaning that from now on, low-value imports will be subject to VAT,” the document notes.

If passed, all goods brought into South Africa, regardless of value, will be subject to the standard 15% Value-Added Tax (VAT).

Previously, items valued below R500 could enter the country without VAT and were instead subject to a flat 20% customs duty.