United Kingdom
Import duty and VAT calculator
Buying something from overseas often means a bill at the border that the listing price does not show. This estimates the customs duty and import VAT, then totals everything into a landed cost so there are fewer surprises. Enter the value of the goods, the shipping and insurance cost, and the duty rate for the type of item. It returns the duty, the import VAT and the all-in figure you actually pay to receive the parcel. Handy before checking out on a foreign site, or when deciding whether an overseas bargain still beats buying locally.
Import VAT uses the destination standard rate. Couriers often add a clearance or handling fee, which is not included.
How it works
- Enter the goods value plus the shipping and insurance cost. Added together, these form the customs value.
- Enter the duty rate for the item; your national customs website lists rates by product category.
- Duty is charged on the customs value.
- Import VAT is then charged on the customs value plus the duty, at your country standard VAT rate, so VAT applies on top of the duty.
- The landed cost is the goods, shipping, duty and import VAT combined.
duty = (goods + shipping) x duty rate; import VAT = (goods + shipping + duty) x VAT rate; landed = goods + shipping + duty + VAT
The customs value is the goods plus shipping and insurance. Duty is charged on that customs value at the rate for the product. Import VAT then applies to the customs value plus the duty, so VAT sits on top of the duty rather than the goods alone. Adding goods, shipping, duty and import VAT together gives the landed cost, the figure you actually pay to receive the parcel.
- goods + shipping
- the customs value duty is charged on
- duty rate
- percentage set by the product tariff code
- VAT rate
- your country standard import VAT rate
Import reference points
| UK and EU standard VAT | 20% and 19 to 27% | EU rates vary by country |
| Typical clothing duty, UK | ≈ 12% | varies by item and origin |
| US federal VAT | none | state sales or use tax may apply |
| Courier handling fee | often 8 to 15 | added by the carrier, not customs |
Worked example
Goods worth 200 with 20 shipping, 5 percent duty, into a 20 percent VAT country: duty is 11 (5 percent of the 220 customs value), and import VAT is 46.20 (20 percent of 231). Add it all up and the landed cost is 277.20, well above the 200 sticker price.
Key facts
- Import VAT is charged on the customs value plus the duty, so the duty itself is taxed.
- Shipping and insurance count towards the customs value, raising both the duty and the VAT.
- The duty rate depends on the product tariff code, so two parcels of equal value can owe different duty.
- The landed cost can sit well above the listing price once duty, VAT and handling are added.
Tips
- Look up the tariff code for your item on your national customs site to get a realistic duty rate.
- Add the courier clearance or handling fee yourself, as it is separate from duty and VAT.
- Check the current low-value threshold, since reliefs are being tightened or removed in several places.
- Compare the landed cost against buying locally before deciding an overseas bargain is worth it.
Landed cost on goods of 200 plus 20 shipping, 20% VAT
| Duty rate | Duty | Import VAT | Landed cost |
|---|---|---|---|
| 0% | 0.00 | 44.00 | 264.00 |
| 5% | 11.00 | 46.20 | 277.20 |
| 12% | 26.40 | 49.28 | 295.68 |
| 20% | 44.00 | 52.80 | 316.80 |
Frequently asked questions
Is there a value below which nothing is charged?+
It depends on the country and is in flux, with low-value import reliefs being tightened or removed in several places. Treat the result as an estimate and confirm current thresholds with your customs authority.
Does it include the courier handling fee?+
No. Carriers frequently add a clearance or handling charge of their own, separate from duty and VAT. If you know the amount, add it to the landed cost yourself.
How do I find the right duty rate?+
Duty depends on what the item is, classified under a commodity or tariff code. Your national customs site has a lookup; pick the closest category to get a realistic rate.
Why is VAT charged on the duty too?+
In most VAT systems, import VAT is calculated on the full value of bringing the goods in, which includes the duty. That is why the VAT base is the customs value plus duty, not the goods alone.
Things to watch
- An estimate only; thresholds, exemptions and product duty rates change, so confirm with your customs authority.
- Carriers usually add their own clearance or handling charge, which this does not include.
- US imports pay no federal VAT, though state sales or use tax may still apply.
Last updated: 2026
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with the official sources listed before making decisions.
- An estimate only; thresholds, exemptions and product duty rates change, so check your national customs authority.
- US imports pay duty but no federal VAT, though state sales or use tax may apply.
- Excludes courier clearance and handling fees.
Reviewed by Vikas Dulgunde.