Ecommerce

Import Duty Cost Calculator

Spread goods, freight, duty and import VAT across the units in a shipment.

Landed cost per unit
Duty—
Import VAT—
Shipment total—
Duty + VAT per unit—
User-entered rates only. Check gov.uk or a broker.

Duty and VAT on imports

Factory price is only the start when goods cross a border. Duty, VAT and broker fees can transform the landed unit cost before you ever set a retail price. Customs values and reliefs differ by country and commodity code — enter the duty and VAT rates you were quoted, not a guess from a forum thread. Incoterms change who pays freight and insurance before duty is calculated. This is not a customs entry and not tax advice. Feed the result into product landed cost and price with reverse margin or product pricing scenario. VAT-registered businesses may reclaim VAT differently from duty — keep the lines separate. Use official tariff tools and a broker for live shipments. Preference documentation under trade agreements can cut duty to zero when rules of origin are met — but only with the paperwork your broker accepts. Misclassified commodity codes are a common expensive surprise; validate the code before you scale a SKU. Build a contingency line for FX moves between purchase order and customs entry.

Worked example

Goods value £4,000, freight and insurance £600, duty 4% on £4,600 = £184. If VAT at 20% applies on (value + freight + duty), VAT is 0.20 × £4,784 = £956.80 before broker fees. Per unit on a 500-unit shipment, duty alone is about 37p — small until you forget it in the retail margin model.

Limits and assumptions

Tariff codes, preference origin and reliefs are not looked up automatically. Exchange rates on the entry date can move the customs value. Not a substitute for a customs broker.

Frequently asked questions

What value is duty usually charged on?

Often the customs value of the goods (commonly cost plus freight and insurance). Confirm with your broker for the Incoterms you use.

Is VAT the same as duty?

No. Duty is a customs charge; VAT is a tax that may be reclaimable for VAT-registered businesses. Enter each rate separately.

Can I rely on this for a formal declaration?

No. Use official tariff tools and a customs broker for live shipments.

How do I allocate duty across SKUs?

Agree a method (value, weight or units) and stay consistent so landed cost per SKU is comparable.

Do samples attract duty?

Sometimes — de minimis and relief rules vary. Ask your broker before assuming samples are free of charge.

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