Temu makes major changes to South African VAT and import charges
The e-commerce site has experienced some setbacks in 2026, and these changes have already received mixed reviews.
Online retailers have grown significantly and become a preferred choice for many South Africans.
Temu, with its exceptionally low prices and wide variety, has become a staple for many people.
In recent months, the Chinese e-retailer has made major changes regarding its operations in South Africa and has now made another.
According to MyBroadband, the e-retailer has chosen to mimic Amazon.com by including VAT and import duties in its pricing.
South Africans will now be able to see these charges when checking out.
Previously, customers had to pay a separate tax bill after their order was dispatched from China.
This was done via the logistics company responsible for delivering the order, which would send customers a link to pay duties shortly after dispatch, facilitating customs clearing.
The process was deemed suboptimal and also created an opportunity for cybercriminals to defraud customers through fraudulent payment links.
Temu has implemented a pre-assessment and prepayment system, but MyBroadband reports that the latest update has been verified across multiple baskets, covering both imported items and Temu Local Warehouse orders.
Whether ordering locally or importing, Temu now states that VAT and duties are included where applicable.
The good news is that imported orders will still include free shipping, while local orders will incur a R75 shipping fee.
Frequent Temu customers have already clocked that there have been changes.
Some reported that item prices had increased by approximately 20%, while others welcomed the removal of post-dispatch payment steps.
One shopper noted an additional benefit: returns on faulty items now include a full refund covering the taxes paid at checkout.
The timing of Temu's update is significant given recent moves by the South African Revenue Service (SARS) to tighten import regulations.
For years, a concession allowed the import of parcels valued at R500 or less with a 20% duty and VAT-free.
This created a loophole that gave international sellers a notable advantage over local retailers, particularly in the clothing and textiles sector.
Temu confirmed to MyBroadband that it has included VAT and applicable duties in the checkout total for South African import orders since 20 March, stating that the total cost to consumers remains unchanged and that orders now clear customs without delays from unpaid duties.
Tune in to 'The Drive with Rob & Roz', on weekdays from 16:00 – 19:00. Stream the show live here or download our mobile app here.
Listen to Jacaranda FM:
- 94.2
- Jacaranda FM App
- http://jacarandafm.com
- DStv 858/ OpenView 602
Follow us on social media:
Image: iStock