Temu affirms to abide by the tax rules of South Africa, Temu indicated that it is “committed to complying with local laws and regulations” according to a statement released.
Temu is a Chinese e-commerce platform that has seen significant growth in South Africa this year.
Temu Affirms to Abide by the Tax Rules of South Africa
Well, this is in response to accusations that it undercuts local businesses by capitalizing on import tax loopholes. A Temu spokesperson claimed in a statement provided to TechCentral on Friday that import tariffs and taxes are not included in the cost of goods advertised on Temu for South Africa. Local authorities will charge clients the applicable taxes when the shipment arrives.
“In our commitment to providing the best service to our customers and adhering to local customs laws, Temu collaborates with a reputable logistics company with extensive experience in e-commerce packaging. The logistics company acts as our customers’ agent with the local customs and tax authorities to clear the packages and process and remit applicable taxes.”
South African Shops are Upset that Temu has Been Offering Steep Discounts
However, South African shops are upset that Temu has been offering steep discounts in South Africa since its start in January and are accusing the company of abusing legal loopholes to undercut local businesses.
In a recent interview with Bruce Whitfield on The Money Show, Michael Lawrence, executive director of the National Clothing Retail Federation, reaffirmed the federation’s, trade unions, and South African manufacturers’ worries.
Offshore Online Traders from the East May Not Pay the Correct duty and/or VAT
“All our investigations so far seem to suggest that the offshore online traders from the East are not paying the correct duty and/or VAT; and there are national revenue collection implications; Sars should be acting,” Lawrence said.
“There are lots of small packages coming in and they’re being delivered by courier companies who should be reporting it. We’ve done some tests because these are competitors, but so far, we haven’t seen any invoices for products or purchases that we’ve made.”
Clothing and textiles entering the nation are expected to be subject to 45% tariff, plus VAT if applicable. “You’re talking about a serious chunk of cash,” Lawrence told Whitfield. “This morning, I was shown an invoice for R600 with a total revenue collection of 10%, or R60, which makes no sense. It means that items are either being mis-declared or incorrectly categorized on the invoice.”
Fast-fashion E-commerce Companies Reshaping the Global Air Cargo Market
As they increasingly compete for limited air cargo space to entice customers with quick delivery times, fast-fashion e-commerce companies like Temu and Shein are reshaping the global air cargo market, according to a TimesLive story.
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