Following the EU’s lead, South Africa will levy VAT on cheap parcels from webshops abroad to protect its clothing industry from international e-commerce competition. Since July 2021, the EU has applied new import rules to create a level playing field between European and non-European webshops. South Africa also experiences an uneven playing field due to cheap, mostly Chinese webshops, leading to “unfair competition”. From September 2024, South Africa will introduce VAT as an interim measure, in addition to the current flat rate of 20% on low-value packages. Other changes include the introduction of ‘appropriate’ import duties for these products as of November.
Source Taxlive
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