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
-
Join our Linkedin Group on ”VAT Rates – Legislative changes”, click HERE
- Global Upcoming VAT Rate changes – Chronological, click HERE
- Join the Linkedin Group on VAT/GST and E-Commerce HERE
Latest Posts in "South Africa"
- Eswatini’s E-Invoicing Initiative: Advancing Tax Compliance and Digital Transformation by January 2028
- South Africa to End VAT Exemption on Low-Value Imports, Impacting eCommerce and Education
- South Africa to Implement E-Invoicing and Real-Time VAT Reporting in Major Tax Overhaul
- Law to Phase Out Import VAT Relief on Small Parcels
- South Africa Proposes VAT Amendments to Implement E-Invoicing and E-Reporting Systems
