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r500 import threshold

south africa e-commerce tax r500 import threshold
Business

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

by Liam Fortuin
August 21, 2025

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.

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