Superdry boss says UK should make Shein pay more tax

The company, which was founded in China but has relocated to Singapore, has been laying the groundwork for a potential sale of shares on the stock market, prompting closer scrutiny of its practices.

The BBC understands that the firm filed initial documents for a London listing earlier this year, after a potential New York listing came under fire from both Republican and Democrat politicians.

US lawmakers were concerned over the company’s “deep ties to the People’s Republic of China”. It has also been accused of using forced labour in parts of its supply chains, which it denies. It told the BBC it has a “zero tolerance for forced labour”.

Shein says its “test and repeat” approach, producing items in small batches and then reordering according to customer demand, means there is less waste, compared to traditional retailers.

But it has been criticised for encouraging shoppers to buy items to wear once and discard, through its low prices and “gamified” social media strategy.

The US and the EU are already looking at whether to tighten tax policies to bring Shein and other direct-to-consumer businesses, like Chinese retailer Temu, into the net.

Shein has previously argued its success was not down to tax exemptions but was due to providing customers with affordable fashion.

An HM Treasury spokesperson said: “Our customs and tax regime balances reducing burdens for businesses and consumers buying lower-value goods from overseas with the interests of UK businesses.”

VAT – value added tax – was charged at the same rate on all goods irrespective of their origin or value, they added.