Companies

Shein Sued for £5.8 Million Over UK Tax Evasion

The Asian ecommerce giant has been accused by two companies it had worked with between 2021 and 2024, which allege that the fast fashion company manipulated customs declarations and forced them to work under pressure.

Shein Sued for £5.8 Million Over UK Tax Evasion
Shein Sued for £5.8 Million Over UK Tax Evasion
Shein is alleged to have been manipulating customs declarations on packages he was bringing into the UK.

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Shein accumulates new lawsuits. The Asian fashion giant has received a new lawsuit, now in the United Kingdom, where until a few weeks ago it was trying to complete its IPO process. Although the company has not confirmed the completion of the IPO process in the country, the complaint puts a new obstacle to the operation.

Specifically, Shein has been sued by the British customs company IT Way Transgroup Clearance, which accuses the Asian giant of having manipulated customs declarations in order to avoid paying VAT on the products it brought into the United Kingdom, according to The Telegraph. The company, which has filed the complaint in the country's High Court, worked as Shein's customs agent between 2021 and 2024.

In the complaint, in fact, filed together with the company in the same sector, Orange Transgroup, the company alleges that it was forced to work with Shein "under pressure", which put its reputation at risk. The complaint refers to this specific fact, for which it demands £5.8 million (€6.8 million) in damages from the Asian company.

The practices denounced by IT Way Transgroup Clearance refer to the customs declarations that Shein deposited to introduce its packages into the country. According to the British company, the Asian giant manipulated such documentation in order not to avoid paying VAT.

Although Shein has not yet made any statements regarding the complaint, this is not the first time that the company has faced legal problems related to the country's customs. At the end of April, in fact, and in the face of protests from many domestic operators, the government admitted that it was working to end the de minimis tax exemption, which already allows operators such as the Asian giant to bring their goods into the UK while paying less tax.

It was then that the UK Treasury Secretary, Rachel Reeves, assured that the executive is working to repeal the tax exemption and control the massive influx of packages from China into the country. Other countries such as the United States and South Africa have already eliminated the rule, while the European Union is working on a similar proposal.