Temu Now Includes VAT, Import Duties at CheckoutNo More Post-Dispatch Tax Payments

Temu has started including VAT and import duties in the prices displayed at checkout for South African customers, aligning with how Amazon.com operates and making shopping on the platform simpler.

Previously, Temu customers had to navigate post-dispatch tax payment links. The logistics company assigned to deliver an order sent customers a link to pay duties shortly after their parcel was dispatched from China, facilitating faster customs clearing.

By moving this process to the point of checkout, Temu is making pricing more transparent and removing a vector that cybercriminals could use to defraud customers.

Customer Reactions

The update has already been noticed by frequent shoppers.

“I’ve got a parcel out for delivery and no customs was asked,” one Temu customer wrote on the MyBroadband forum. “I did notice the prices on Temu on the items I ordered went up about 20%. Thought it was war-related. Much prefer it this way. No dodgy courier dealings.”

Another forum member said: “Also saw this now: Order total (VAT & duties included, if applicable) on my last three orders.”

“Another big advantage is that you don’t lose out on the cost of duties when returning a faulty item. They now refund the full amount, including the taxes.”

How It Works

Whether importing or ordering locally, Temu now states that VAT and duties are included, if applicable. Interestingly, shipping on imported orders is free while local orders attract a R75 fee.

This aligns Temu more closely with Amazon’s established model for South African imports. Amazon has long used a deposit system for import taxes on international orders, providing price certainty.

If the actual import cost is lower, the customer is automatically refunded the difference. If higher, Amazon absorbs the additional expense.

SARS Crackdown Context

The timing of Temu’s change is relevant given recent moves by the South African Revenue Service (SARS) to tighten import regulations.

For years, many fast fashion and e-commerce retailers benefitted from a concession on low-value imports. This rule allowed parcels under R500 to be imported with a flat 20% duty and 0% VAT.

SARS moved to address this issue following backlash from the local manufacturing and retail industry. Standard duties for clothing are typically 45% plus 15% VAT .

By integrating tax calculation into checkout, Temu may be seeking to ensure full compliance with SARS’s directives.

Temu’s Statement

Contacted for comment, Temu told MyBroadband that it has been including VAT and applicable duties in the checkout total for South African import orders since 20 March.

“The goal is to make the shopping experience simpler: consumers pay everything at checkout rather than having to settle a separate tax bill after dispatch.”

“The total cost to the consumer is unchangednot a cent more is being chargedand orders now clear customs without the risk of delays from unpaid duties.”

The Bottom Line

No more post-dispatch tax links. No more dodgy courier dealings. No more surprises.

VAT and duties are now included at checkout. The price you see is the price you pay.

Temu has caught up with Amazon. And South African shoppers are the winners.

{Source: Mybroadband}

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