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Import duty calculator: duty and VAT due at the border
Enter the value of the goods, freight and insurance, your duty rate and your VAT or GST rate. You get the duty and tax due and the cost of the shipment after both.
Import duty is the customs value times the duty rate. Import VAT is then charged on the customs value plus the duty. At the default numbers duty is USD 1,330 and VAT is USD 5,666.
Written by Procurement VMS Editorial Team · Reviewed by Michael, Procurement Advisor Expert · Updated
Your numbers
The boxes start with an example so you can see how it works. Replace them with your own figures.
Your result
VAT of USD 5,666 is due at clearance but you can reclaim it, so it is a cash flow cost, not a cost of the goods. Budget for paying it before the claim comes back. The shipment costs USD 28,330 once duty is added.
| Customs value | USD 26,600 |
|---|---|
| Customs duty | USD 1,330 |
| Import VAT or GST | USD 5,666 |
| Duty and tax due at clearance | USD 6,996 |
| Total cost of the shipment | USD 28,330 |
The currency box changes the label only. Enter amounts in the currency you choose.
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How the import duty calculator works
The formula
Customs value = goods + freight + insurance (CIF) or goods only (FOB). Duty = customs value x duty rate. VAT = (customs value + duty + other charges) x VAT rate.
Two charges apply at the border. Duty is set by the type of product and where it comes from. VAT or GST is then charged on the value including the duty, so it compounds.
Rates differ by product code and by trade agreement, and some goods have extra levies. Treat the figure as a planning estimate and confirm the codes and rates with your broker before you place a large order.
The example numbers are illustrative and are not benchmarks. Use your own data for any decision.
How to use it with your own data
- Look up your product code and the duty rate for the country of origin.
- Enter the goods value and the shipping costs, and choose the valuation basis that your customs authority uses.
- Set the VAT or GST rate and say whether you can reclaim it, so the total reflects your real cost.
Mistakes that skew the answer
Using the wrong product code
The duty rate follows the code. A different code for similar goods can change the rate. Ask your broker to confirm it.
Forgetting that VAT sits on top of duty
VAT is charged on the value plus the duty, so a high duty rate raises the VAT too.
Ignoring origin rules
Goods from a country with a trade agreement may enter at a lower rate if the paperwork proves origin. A certificate of origin can be the difference.
What to do with the result
Take the duty figure into the landed cost calculator to compare suppliers on a delivered basis. If prices move because of a new tariff, test the effect in the tariff impact calculator. Your terms of sale decide who pays duty, so read the trade terms guide and the DDP shipping page before you agree to them.
Questions about the import duty calculator
How is import duty calculated?
Duty is the customs value multiplied by the duty rate for the product code. The customs value is the goods value, with freight and insurance added in many countries.
Is VAT charged on top of import duty?
Yes. In most systems import VAT is calculated on the customs value plus the duty, and sometimes on other charges as well.
Can I avoid import duty?
Not by choice. You can lower it legally through the right product classification, trade agreements with proof of origin, or duty relief schemes. Ask a customs broker.
Does the calculator work for every country?
The arithmetic does. The rates, the valuation basis and the VAT treatment are country specific, so enter the figures from your own tariff.