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You are here: Home / News / The End of the R500 Threshold: South Africa’s New Tax Era for E-Commerce Imports

The End of the R500 Threshold: South Africa’s New Tax Era for E-Commerce Imports

21 August 2025 by CapeTownNewsReader

South Africa has ended the R500 VAT exemption on imported goods, meaning all online purchases from abroad now face 15% VAT and 20% customs duty. This change aims to protect local jobs and businesses hurt by cheap imports from big foreign sellers like Shein and Temu, who used to avoid taxes by sending small, lowvalue parcels. While shoppers might pay more now, the new rules try to make shopping fair and help South Africa’s clothing and manufacturing industries survive and grow. It’s a big shift that will shape how people buy online and how local businesses compete in the future.

The post The End of the R500 Threshold: South Africa’s New Tax Era for E-Commerce Imports appeared first on Cape Town Today.

Category: NewsTag: Cape Town Today, NEWS

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