advantages of online retailing Archives

By Jana Botha, Tax Consultant, and Prenisha Govender, Associate, Tax Practice, Baker McKenzie Johannesburg The pandemic-fuelled growth of the digital economy and unabated demand for online retail products across Africa have led to extensive disruption in the Consumer Goods and Retail Sector (CG&R) sector. Due to a growth in demand for online retail, CG&R companies in Africa have been rapidly adapting their digital operating models, and multinational e-commerce platforms operating in the region have attracted a record number of new customers. This digital transition, and resultant growth in the e-commerce sector, has tax implications for digital CG&R businesses operating in Africa. The OECD’s Pillar One and Two Multilateral international tax changes currently being implemente...

Consumers head online for niche products, better service, and quick delivery South African consumers are heading online in greater numbers as the e-commerce shopping experience increasingly offers more choice and convenience than can be found at traditional big-brand, brick-and-mortar retailers, says Mike Farquharson, Managing Director of online courier aggregator Rush. Statista market and consumer data projects that 31.6 million South Africans could be converted to online shopping by 2024. According to FNB, the average e-commerce spend already increased by 30 percent in the first half of 2020 compared to the year prior while Rand Merchant Bank expects the sector’s value to surge by 150 percent, to R225 billion, within the next five years. “These findings suggest that shifts in sho...

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Africa: tax implications of digital transformation in the consumer goods and retail sector

SA’s e-commerce surge poised to benefit small, independent retailers