In general, import duty is a tax that the importer has to pay to bring foreign goods into his or her country. Import VAT (Value Added Tax) is a tax charged on imported goods and services.
Duty and VAT are calculated as a percentage of the value of the imported goods, consisting of the product value and the freight & insurance costs.
For importing into the EU, duty and VAT are normally due when a minimum value threshold of £18 (€22, or equivalent in local currency) is reached. Duty is not paid on consignments shipped within the EU.
Import duty rates vary depending on the type of goods; many goods are duty free.
Relief from duty and VAT may apply in special cases.
Goods imported as freight are not subject to the same tax allowances as goods brought in as accompanied baggage (e.g. goods brought back by travelers returning from holiday).
For goods imported via post/courier, taxes are payable on consignments of a value greater than £18 (€22).
For individuals traveling by air or sea, goods up to a value of £340 (€430) can be hand-carried through customs without paying duty or VAT.
For individuals traveling by land (train or car), goods up to a value of £240 (€300) can be brought in without paying duty or VAT.
Please note that there are limits on the quantity of tobacco and alcohol that can be hand-carried into the EU tax free.
It is the responsibility of the sender to provide details of the goods that are being shipped.
For non-commercial shipments, a pro forma invoice is normally used for this purpose.
Information on the invoice must include:
• a full description of the goods
• the value of the goods
• the sender and recipients’ name and address
In addition, the sender should indicate on the invoice if any special circumstances (gifts, repairs, returns, personal belongings) apply.
The recipient of the goods is responsible for the payment of duties and taxes, unless the invoice specifies that a third party should be billed.
The shipping provider will normally pay the duty and VAT taxes to Customs on behalf of the recipient, and will often charge an advancement fee for providing this service.
In most cases the courier will not release the shipment to the recipient until their charges and any taxes due have been collected.
No. Duty is not charged if either:
• the total value of the goods (not including shipping charges or insurance) does not exceed £135 (€150, or equivalent in local currency)
• or the amount of duty payable on any given item, does not exceed £9 (€10, or equivalent in local currency).
Neither duty nor VAT is payable if the total value of the goods (not including shipping charges or insurance) does not exceed £18 (€22, or equivalent in local currency).
In addition to duties and VAT, certain products may also be subject to excise duty.
These products include:
• Alcoholic beverages, such as beer, wines and spirits
• Tobacco products
Rates of excise duty are set by each individual member state and vary considerably across the EU.
Please note that the Duty Calculator does not provide tax rate information on excise goods.
In addition, a small number of products are subject to anti-dumping duty (e.g. leather footwear and bicycles from China or Vietnam and certain candles from China) and some products that are produced in the US are liable to retaliatory duties. These include metal spectacle frames and diaries.
Additional charges will vary from company to company, however the shipping provider may charge:
• a customs clearance fee, or customs handling fee for processing the import declaration
• an advancement fee for paying the duty and VAT on behalf of the recipient
• an airline handling fee for loading and unloading the goods
• a security fee for screening or x-raying the goods
• a fee for preparing the customs declaration
See below examples of additional charges on goods shipped to the UK:
• Import handling fees by Royal Mail: £8 per parcel liable for customs charges
Source: http://www.royalmail.com/portal/rm/content1?catId=400044&mediaId=400362
• Import handling fees by DHL for import to UK: £1.25, or 2% of the shipment value, whichever is the greater.
Source: http://www.dhl.co.uk/publish/gb/en/information/shipping/about_duty_and_vat.high.html
• Import ancillary service fees by FedEx vary on the country of import and FedEx currently charges:
• £30 for a Duty-and-Tax reclaim
• £35 for Freight clearance
• £11.25 minimum for storage
Source: http://fedex.com/ancillary/go/service
Certain products are subject to a "nil" rate of duty on import into the EU.
Although too numerous to list here, examples include:
• Most Household Furniture
• Books
• Computer Software
• Desktop PCs
• Digital Cameras
• Laptops
• Mobile Phones
• Video Game Consoles
Yes, standard rates of tax are the same for both private individuals and commercial organizations.
However commercial importers may benefit from reduced duty rates in accordance with special trade agreements that exist between the EU and many countries, including:
• Bangladesh • Brazil • Egypt • India • Indonesia • Malaysia
• Mexico • Morocco • Pakistan • South Africa • Thailand • Vietnam • and many more ...
Claims to these preferential rates must be backed by supporting documents, that are not generally made available for non-commercial shipments.
Therefore import duty and VAT calculations made on this website assume that customs duty will be payable at the full rate, irrespective of which country the goods are consigned from.
Contact us if you represent a company and would like to learn more about special trade agreements.
The shipping provider will normally bill duty and VAT plus handling and advancement fees, and will not release your goods until these charges have been paid.
It is likely that you will incur storage charges if you delay payment.
A gift is defined by customs as any item which:
• has been sent from a private individual to another private individual
• is for the personal use of the individual or his or her family
• has not been paid for, either directly or indirectly by the receiver
• is of an occasional nature only; e.g. for a birthday or anniversary
If the value of the gift (not including shipping and insurance costs) does not exceed £40 (€45, or equivalent in local currency) and the customs declaration is correct, duty and VAT will not be paid.
If the value of the gift is greater than £40 (€45, or equivalent in local currency), then VAT is payable.
However, under the general thresholds, duty will not be payable if either:
• the value of the gift is less than £120 (€150, or equivalent in local currency)
• or the duty amount is less than £8 (€10, or equivalent in local currency).
Import duty on watches is not calculated on a straightforward percentage rate.
The duty payable on a watch is expressed as:
4.5% or minimum €0.3 Euro - maximum €0.8.
In general, the duty payable on a single watch normally equals €0.8.
The duty payable will be calculated at 4.5% of the customs value, unless the resultant duty is less than the minimum, in which case the duty payable will default to €0.3 per watch.
If the duty amount calculated at 4.5% of the customs value is more than the maximum, the duty payable will default to €0.8 per watch.
Let's assume we import a Rolex with a total customs value of €6,000.
Duty at 4.5% = €270, which is more than the €0.8 per watch maximum amount.
Duty payable will default to €0.8 (1 x €0.8).
Let's assume we want to import 10 watches with a total customs value of €1,000 Euro.
Duty at 4.5% = €45, which is more than the €0.8 per watch maximum amount.
Duty payable will default to €8 (10 x €0.8).
Now let's assume we want to import 100 watches with a customs value of €300.
Duty at 4.5% = €13.50, which is less than the 0.3 Euro per watch minimum amount.
Duty payable will default to 30 Euro (100 x €0.3).
To conclude, 4.5% will only apply if the duty payable per watch falls between €0.3 and €0.8.
No duty and VAT will be payable if the goods have been repaired free of charge and you can provide a copy of the guarantee/warranty agreement to your shipping provider for presentation to customs.
If you have to pay for the repair, duty and VAT will be charged on the repair costs only.
You can claim back duty and VAT if:
• You return the goods to the shipper or
• You arrange for the goods to be destroyed under supervision.
You must make a claim within 12 months from the time of import, and the goods must not have been used beyond what was necessary to establish that they were damaged, defective or not as ordered.
Data
• Let’s buy a set of Callaway golf clubs for a price of $ 600.00 (including sales tax)
• Total Shipping cost is $ 200.00
• The consignment is insured up to $ 500.00 for $ 10.00
• Official exchange rate by customs agencies on June 1st, 2009: 1.56 USD to 1 GBP
• Duty tax rate for golf clubs: 2.70%
• VAT tax rate in the UK: 17.5%
Calculation Step 1 of 6 - let’s calculate the customs value
+ $ 600.00 <- price of the golf clubs set including sales tax
+ $ 200.00 <- shipping cost
+ $ 10.00 <- insurance cost
-----------------
= $ 810.00
Step 2 of 6 - let’s convert into £
$ 810.00 / 1.56 = £ 517.60
Step 3 of 6 - let’s calculate the import duty
£ 517.60 x 2.70% = £ 13.98
Step 4 of 6 - let’s calculate the value on which the VAT will be paid
+ £ 517.60 <- customs value of the golf clubs
+ £ 13.98 <- import duty USA to UK
-----------------
= £ 531.58
Step 5 of 6 - let’s calculate the VAT
£ 531.58 x 17.5% = £ 93.02
Step 6 of 6 - let’s now get the total calculation for import duty and VAT on the set of golf clubs
+ £ 13.98 <- import duty
+ £ 93.02 <- VAT
-----------------
= £ 107.00
Import duty and VAT for the Callaway set of golf clubs is therefore £ 107.00.
The total landed cost equals £ 624.60, that is £ 517.60 plus £ 107.00.
Please note that the shipping provider might charge additional fees.
Data:
• Let’s buy a Fender Stratocaster electric guitar for $ 450.00 (including sales tax) and a SansAmp Bass Driver DI for $ 400.00 (including sales tax)
• Total Shipping cost: $ 150.00
• The consignment is insured up to $ 500.00 for $ 10.00
• Official exchange rate by customs agencies on June 1st, 2009: 1.56 USD to 1 GBP
• Duty tax rate for electric guitars: 3.20%
• Duty tax rate for amplifiers: 2.00%
• VAT tax rate in the UK: 17.5%
Calculation: Step 1 of 9 - let’s calculate the customs value
+ $ 600.00 <- price of the Fender Stratocaster electric guitar including sales tax
+ $ 400.00 <- price of the SansAmp Bass Driver DI
+ $ 200.00 <- shipping cost
+ $ 10.00 <- insurance cost
-----------------
= $ 1,210.00
Step 2 of 9 - let’s split the shipping cost and insurance cost between the guitar and the amplifier
The value of the guitar is 60% of the total value of the goods
therefore
• the shipping cost allocated to the guitar equals = $ 200.00 x 60% = $ 120.00
• the insurance cost allocated to the guitar equals = $ 10.00 x 60% = $ 6.00
The value of the amplifier is 40% of the total value of the goods
therefore
• the shipping cost allocated to the amp equals = $ 200.00 x 40% = $ 80.00
• the insurance cost allocated to the amp equals = $10.00 x 40% = $ 4.00
Step 3 of 9 - let’s calculate the customs value
• for the electric guitar
+ $ 600.00 <- price of the electric guitar including sales tax
+ $ 120.00 <- shipping cost
+ $ 6.00 <- insurance cost
-----------------
= $ 726.00
• for the amplifier
+ $ 400.00 <- price of the amplifier including sales tax
+ $ 80.00 <- shipping cost
+ $ 4.00 <- insurance cost
-----------------
= $ 484.00
Step 4 of 9 - let’s convert into £
• the electric guitar
$ 726.00 / 1.56 = £ 463.93
• the amplifier
$ 484.00 / 1.56 = £ 309.28
Step 5 of 9 - let’s calculate the import duty
• for the electric guitar
£ 463.93 x 3.20% = £ 14.85
• for the amplifier
£ 309.28 x 2.00% = £ 6.19
However the duty for the amplifier will default to nil because the amount payable is less than the £9 (€10, or equivalent in local currency) minimum threshold.
Step 6 of 9 - let’s calculate the value on which the VAT will be paid
• for the electric guitar
+ £ 463.93 <- customs value of the electric guitar
+ £ 14.85 <- import duty USA to UK
-----------------
= £ 478.77
• for the amplifier
+ £ 309.28 <- customs value of the amplifier
+ £ 0.00 <- import duty USA to UK
-----------------
= £ 309.28
Step 7 of 9 - let’s calculate the VAT
• for the electric guitar
£ 478.77 x 17.5% = £ 83.78
• for the amplifier
£ 315.47 x 17.5% = £ 55.20
Step 8 of 9 - let’s now get the total calculation for import duty and VAT on our Stratocaster guitar and the SansAmp amplifier
• for the electric guitar
+ £ 14.85 <- import duty
+ £ 83.78 <- VAT
-----------------
= $ 98.63
• for the amplifier
+ £ 0.00 <- import duty
+ £ 55.20 <- VAT
-----------------
= $ 55.20 Step 9 of 9 - let’s sum up
+ £ 98.63 <- import duty and VAT for the Fender Stratocaster electric guitar
+ £ 55.20 <- import duty and VAT for the SansAmp amplifier
------------------
= £ 153.88
Total import duty and VAT for the guitar and the amplifier is therefore £ 133.98.
The total landed cost equals = £ 913.38, that is:
+ £ 773.21 <- total cost of the guitar, the amplifier, shipping and insurance in £
+ £ 153.88 <- total import duty and VAT on the guitar and the amplifier
------------------
= £ 927.09
Please note that the shipping provider might charge additional fees.
Data
• Let’s buy a HP 2133 Mini Note laptop for $ 600.00, an Apple iPhone 3G 8 GB for $ 300.00 and an Olympus E-620 digital camera for $ 600.00
• Total Shipping cost: $ 200.00
• The consignment is insured up to $ 1,000.00 for $ 20.00
• Official exchange rate by customs agencies on June 1st, 2009: 1.56 USD to 1 GBP
• Import duty tax rate for laptos: 0.00% (laptops are duty free items)
• Duty tax rate for mobile phones: 0.00% (mobile phones are duty free items)
• Import duty tax rate for digital cameras: 0.00% (digital cameras are duty free items)
• VAT tax rate in the UK: 17.5%
Calculation Step 1 of 9 - let’s calculate the customs value
+ $ 600.00 <- price of the laptop (including sales tax)
+ $ 300.00 <- price of the Apple iPhone (sales taxes included)
+ $ 600.00 <- price of the Olympus digital camera (sales taxes included)
+ $ 200.00 <- shipping cost
+ $ 20.00 <- insurance cost
-----------------
= $ 1,720.00
Step 2 of 9 - let’s split the shipping cost and insurance cost among the laptop, the iPhone 3G and the digital camera
The value of the laptop is 40% of the total value of the goods
therefore
• the shipping cost allocated to the laptop equals = $ 200.00 x 40% = $ 80.00
• the insurance cost allocated to the laptop equals = $ 20.00 x 40% = $ 8.00
The value of the Apple iPhone is 20% of the total value of the goods
therefore
• the shipping cost allocated to the mobile phone equals = $ 200.00 x 20% = $ 40.00
• the insurance cost allocated to the mobile phone equals = $20.00 x 20% = $ 4.00
The value of the Olympus digital camera is 40% of the total value of the goods
therefore
• the shipping cost allocated to the mobile phone equals = $ 200.00 x 40% = $ 80.00
• the insurance cost allocated to the mobile phone equals = $20.00 x 40% = $ 8.00
Step 3 of 9 - let’s calculate the customs value
• for the HP laptop
+ $ 600.00 <- price of the laptop including sales tax
+ $ 80.00 <- shipping cost
+ $ 8.00 <- insurance cost
-----------------
= $ 688.00
• for the Apple mobile phone
+ $ 400.00 <- price of the phone including sales tax
+ $ 40.00 <- shipping cost
+ $ 4.00 <- insurance cost
-----------------
= $ 444.00
• for the digital camera
+ $ 600.00 <- price of the digital camera including sales tax
+ $ 80.00 <- shipping cost
+ $ 8.00 <- insurance cost
-----------------
= $ 688.00
Step 4 of 9 - let’s convert into £
• the HP laptop
$ 688.00 / 1.56 = £ 441.03
• the Apple iPhone
$ 444.00 / 1.56 = £ 284.62
> the Olympus digital camera
$ 688.00 / 1.56 = £ 441.03
Step 5 of 9 - let’s calculate the import duty
• for the laptop
£ 441.03 x 0.00% = £ 0.00
• for the iPhone
£ 284.62 x 0.00% = £ 0.00
• for the digital camera
£ 441.03 x 0.00% = £ 0.00
Step 6 of 9 - let’ calculate the value on which the VAT will be paid
• for the HP notebook
+ £ 441.03 <- customs value of the laptop
+ £ 0.00 <- import duty USA to UK
-----------------
= £ 441.03
• for the Apple iPhone
+ £ 284.62 <- customs value of the phone
+ £ 0.00 <- import duty USA to UK
-----------------
= £ 284.62
• for the Olympus camera
+ £ 441.03 <- customs value of the digital camera
+ £ 0.00 <- import duty USA to UK
-----------------
= £ 441.03
Step 7 of 9 - let’s calculate the VAT
• for the HP laptop
£ 441.03 x 17.5% = £ 77.18
• for the Apple mobile phone
£ 284.62 x 17.5% = £ 49.80
• for the Olympus camera
£ 441.03 x 17.5% = £ 77.18 Step 8 of 9 - let’s now get the total calculation for import duty and VAT
• for the laptop
+ £ 0.00 <- import duty (laptops are free of duty)
+ £ 77.18 <- VAT
-----------------
= $ 77.18
• for the iPhone
+ £ 0.00 <- import duty (mobile phones are free of duty)
+ £ 49.80 <- VAT
-----------------
= £ 49.80
• for the digital camera
+ £ 0.00 <- import duty (digital cameras are free of duty)
+ £ 77.18 <- VAT
-----------------
= £ 77.18
Step 9 of 9 - let’s sum up
+ £ 77.18 <- import duty and VAT for the HP Mini Note laptop
+ £ 49.80 <- import duty and VAT for the Apple iPhone 3G 8 GB
+ £ 77.18 <- import duty and VAT for the Olympus E-620 digital camera
------------------
= £ 204.16
Total import duty and VAT for the laptop, the mobile phone and the digital camera is therefore £ 175.00.
The total landed cost equals =
+ £ 1,099.11 <- total cost of the consignment in £
+ £ 204.16 <- total import duty and VAT
------------------
= £ 1,303.27
Please note that the shipping provider might charge additional fees.
The Duty Calculator is a free online tool that enables individuals to quickly and easily check their duty and VAT tax liability before making a purchase from abroad.
All duty and VAT rates have been carefully researched by professional customs duty experts and are in line with the rates of the UK Customs Integrated Tariff or equivalent journals throughout the EU.
• Food or drink items, perishable products
• Medicines, unlicensed drugs and health supplements
• Tobacco products, alcoholic beverages (beer, wine and spirits)
• Plants and fresh flowers
• Chemicals and potentially hazardous or flammable products;
• Live animals
• Offensive weapons, firearms, explosives and ammunitions
• Pornographic material
___
Register here for free.
Running a duty and VAT calculation is quick and straightforward.
Just register or sign in, enter the following data and click "Calculate".
• Importing from - Select the country you are importing from, for example USA
• Importing to - Select the country you are importing to, for example UK
• Product category - Select the main category for your product, for example "Consumer electronics"
• Product subcategory - Select the product subcategory, for example "Computers & Peripherals"
• Product - Select the product, for example "Laptops"
• Product description - Enter the brand name and description of your product, for example "HP 2133 Mini Note”. This will help you keep track of your calculations
• Product value - Type the price you paid for the item (including sales tax)
• Add a product- Click this button to add additional items if there are multiple products in your shipment, for example a laptop and a digital camera
• Shipping costs - Enter your actual or estimated shipping costs. Shipping costs are taxable and must be input for calculating duty and VAT
• Insurance costs - Enter the cost of the policy (excluding IPT) if your goods are insured. Insurance costs are taxable and must be added for calculating duty and VAT. Enter "0" only if your goods are not insured.
On the calculation page, click the button “Add a product”.
The Duty Calculator will return the total charges with individual duty and tax amounts for each item.
Your calculation result may indicate that no duty is payable for any of the following reasons:
• the product you are importing is duty free (the duty rate will be shown as "0 %")
• the value of the product is less than £135 (€150, or equivalent in local currency)
• the amount of duty payable is less than £9 (€10, or equivalent in local currency) and has therefore defaulted to "0"
• the goods are being shipped between 2 EU countries
Your calculation result may indicate that no duty or VAT is payable for any of the following reasons:
• The product you are importing is duty free and zero rated for VAT (e.g. books)
• The total value of the consignment is less than the low value threshold of £18 (€22, or equivalent in local currency) and duty/VAT has therefore defaulted to nil
• The goods are being shipped between 2 EU countries
The term Harmonised System (HS) codes refers to the internationally recognised system of tariff classification adopted in the late '80s.
HS codes are 6 digits long and are uniform throughout the member countries of the World Customs Organisation (WCO).
Classification under the HS are governed by a set of general interpretative rules, known as the GIR's.
In theory, each Customs authority is bound by these rules and classifications should be the same worldwide.
In practice, interpretation of the rules can differ greatly.
An EORI number (Economic Operator Registration and Identification Number) is a number that is unique throughout the European Community, assigned by a customs authority to economic operators (businesses).
You must have an EORI number to import goods from outside the EU if you are:
• VAT registered
• Importing in the course of your business
The EORI number mirrors the nine digit UK VAT registration number except it is prefixed with the letters 'GB' to indicate a UK EORI number, and suffixed with '000'.
Example:
GB 123 4567 89 000
In order to obtain an EORI number in the UK, legal entities must submit an application form (completed and signed by a responsible person within your business) either by hard copy (through Form C220A) or electronically by email (through Form C220)
For hard copy applications:
You will need to print off the application form (C220A) or obtain a form by telephoning the National Advice Service on 0845 010 9000.
The complete application has to be sent to:
HM Revenue & Customs
EORI Team
13th Floor South
Government Buildings
Ty Glas
Llanishen
Cardiff
CF14 5ZN
For electronic applications:
Download, save, complete the application (C220), scan all the relevant documentation and email all of it to turn@hmrc.gsi.gov.uk .
In most cases the EORI application will normally be processed within one working day of receipt by the EORI Team. After the EORI number has been issued, you will be notified by HMRC and you will be able to use it 24 hours after the notification.
Anti dumping duty is levied on goods imported into the EU at artificially low prices.
It is charged in addition to, and independent of, customs duty.
Some examples of products subject to anti-dumping duty are:
* leather upper footwear originating in China or Vietnam
* bicycles originating in China or Vietnam
* certain candles originating in China
The European Commission has imposed a 15% retaliatory duty on a number of US products, including:
• Ski trousers
• Trousers for men made of wool
• Metal spectacle frames