Takealot has told SARS that Chinese e-commerce majors Shein and Temu should be forced to set up bases in SA through local offices and distribution centres so that the fiscus and economy benefit from their operations.

A Business Day report says the VAT amendments submissions made by Naspers-owned Takealot to SARS call for a level playing field between domestic companies and international players.

Takealot has proposed that all offshore e-commerce firms operating within the borders of the country must establish a physical local office so that it is easier for authorities to enforce SA’s regulations and laws.

The company is also calling on authorities to demand that international players establish local distribution centres, employ locals and partner with local SMMEs.

Another proposal put forward by Takealot is that all international e-commerce businesses must establish a local business account with an SA bank as a measure of monitoring financial transactions and ensure that all revenue generated within the country is subject to local taxation.

‘Implementing these conditions will not only create a fairer competitive environment but will also ensure that international e-commerce players contribute their fair share to the SA, given that their business is incumbent on the spending power of SA consumers,’ Takealot’s submission states.

‘A local presence, local representatives and a local financial footprint will all enable local agencies to enforce compliance with local laws, including the collection of tariffs, VAT on imports and ensure acceptable workers’ conditions. These measures will ensure that the SA e-commerce industry and other sectors impacted by international e-commerce are all competing with these players on a level playing field. In the long term, these conditions will help to foster a more sustainable and balanced e-commerce ecosystem in SA.’

Full Business Day report