Is VAT charged on top of import duty?

In most countries, yes. Import VAT is applied to the duty-inclusive value (customs value + duty), not the customs value alone. This creates a compounding effect: the effective combined tax rate is higher than simply adding duty rate and VAT rate.

Can VAT-registered businesses reclaim import VAT?

In most countries, VAT-registered businesses can reclaim import VAT as input tax in their VAT return. The UK and EU allow postponed VAT accounting. For VAT-registered buyers, import VAT is a cash flow item, not a true cost.

What is a de minimis threshold?

Many countries exempt low-value shipments below a threshold from duty and/or VAT. Examples: EU €150 duty-free, UK £135 duty-free, US USD 800. Check the importing country's customs authority for current thresholds.

What VAT rate should I use?

Use the importing country's standard rate for your commodity: UK 20%, most EU countries 19%–25%, Australia 10%, Singapore 9%. Some goods (food, books, medical) attract reduced rates in certain countries.

Does this calculator handle anti-dumping duties?

No. This calculator covers standard ad valorem duty and VAT/GST only. Anti-dumping, countervailing and safeguard duties are additional and product/country-specific. Check the tariff schedule for any additional measures on your HS code and origin.

Is this suitable for customs declarations?

No. This is an estimate for budgeting and planning purposes. Actual duty and tax assessments are made by national customs authorities. Always use a licensed customs broker for import declarations.

Duties and Taxes Estimate Calculator

Enter customs value, import duty rate and VAT/GST rate to estimate total import taxes. VAT or GST is calculated on the duty-inclusive base (customs value + duty). Shows step-by-step calculation and effective tax rate. Local exemptions and tax bases vary by country.

Estimate import duty and VAT/GST from customs value. VAT or GST is typically calculated on the duty-inclusive value (customs value + duty). Enter 0 for either rate if not applicable to your shipment.

Import tax estimateDuty + VAT calculationLanded cost planningCustoms budgeting

Customs Value

CIF or FOB depending on importing country

Duty Rate (%)

From HS code tariff schedule

VAT / GST / Tax Rate (%)

Enter 0 if not applicable or reclaimable

Formula

Duty = Customs Value × Duty Rate ÷ 100 | VAT/GST = (Customs Value + Duty) × Tax Rate ÷ 100

In most countries, VAT or GST on imported goods is applied to the duty-inclusive value — meaning tax is calculated on the customs value plus any import duty. This is sometimes called a 'tax on a tax' effect and means the combined tax burden is higher than simply adding the duty rate and VAT rate percentages. The effective tax rate shows total taxes as a percentage of the original customs value.

Worked Example

Import to UK: Customs value USD 10,000 · Duty rate 5% · UK VAT 20%:

Duty = USD 10,000 × 5% = USD 500

VAT base = USD 10,000 + USD 500 = USD 10,500

VAT = USD 10,500 × 20% = USD 2,100

Total taxes = USD 500 + USD 2,100 = USD 2,600

Effective tax rate = USD 2,600 ÷ USD 10,000 = 26.0%

Note that the effective rate of 26% is higher than simply adding 5% + 20% = 25%. The difference arises because VAT is applied on the duty-inclusive base. For VAT-registered importers who reclaim VAT, the effective cash cost may be only the duty (5%) plus the time-cost of the VAT cash flow.

Frequently Asked Questions

Many countries exempt low-value shipments from duty and/or VAT below a de minimis threshold. The threshold and coverage (duty, VAT, or both) varies by country. Examples: EU €150 (duty-free up to threshold, but VAT still applies from first euro from July 2021), UK £135 (duty-free; VAT collected by seller/marketplace), US USD 800, Australia AUD 1,000. Check the importing country's customs authority for current thresholds.

Anti-dumping duties are additional charges imposed on goods from specific countries where those goods are found to be exported below fair market value (dumped). Anti-dumping measures are product and country-specific and published in the importing country's tariff schedule. They can be very high (sometimes 100%+) and are in addition to standard duty. Check the tariff schedule for any anti-dumping or countervailing measures on your specific HS code and country of origin combination.

Use this in your workflow

Calculate CIF customs value with the Customs Value Calculator, compute duty and VAT here, then feed total import taxes into the Landed Cost per Unit Calculator. Browse all Online Business Calculators.

When to use this calculator

→Budgeting total import tax exposure (duty + VAT) before placing an import order
→Understanding why the combined effective tax rate exceeds duty rate plus VAT rate
→Comparing import tax exposure under different duty rates (e.g. MFN vs FTA preferential rates)
→Briefing finance on total import cash flow requirements including VAT timing

HS Lookup Beta — Tariff Provider Coverage

The HS Code Duty Calculator includes Lookup Beta, which assists with duty rate lookups for supported markets. Support levels below. All markets support manual rate entry as fallback.

Market	Support Mode	Duty	VAT/GST	Special Duty	Source	Confidence	Reviewed	Fallback
UK	Automated beta	API lookup	20% auto	Partial	GOV.UK Trade Tariff API	High	2026-06-26	Yes
EU	Source-assisted beta	Source-assisted	Member-state VAT	AD/CVD/safeguard	EU TARIC	Medium	2026-06-26	Yes
US	Dataset-assisted beta	Base HTS only	No federal VAT	301/Ch99/AD-CVD	USITC HTS	Low-Medium	2026-06-26	Yes
Singapore	Rule-assisted	Dutiable categories	GST 9% auto	Dutiable goods	Singapore Customs	High	2026-06-26	Yes
UAE	Source-assisted	Manual fallback	VAT 5% auto	Exemptions warning	UAE Customs	Low	2026-06-26	Yes
Saudi Arabia	Source-assisted	Manual fallback	VAT 15% auto	Exemptions warning	ZATCA	Low	2026-06-26	Yes
Australia	Source-assisted	Manual fallback	GST 10% auto	FTA/origin warning	ABF / ATO	Low	2026-06-26	Yes
Canada	Source-assisted	Manual fallback	GST/HST/PST	CPTPP/CUSMA	CBSA / CARM	Low	2026-06-26	Yes
Japan	Source-assisted	Manual fallback	10%/8%	RCEP/EPA	Japan Customs	Low	2026-06-26	Yes
South Korea	Source-assisted	Manual fallback	VAT 10% auto	FTA/excise	Korea Customs	Low	2026-06-26	Yes

What this means

UtilityPilot combines automated beta lookups, dataset-assisted checks, rule-assisted tax logic and source-assisted manual fallback for planning landed cost before shipment. It is not a customs ruling and does not replace official customs classification or broker advice. Always verify duty rates with a licensed customs broker.

Broker verification required

Duty rates change, trade-defence measures are company-specific, and preferential rates require valid proof of origin. Use these estimates for budgeting only. Official duty is determined by the relevant customs authority.

Related calculators

Customs Value CalculatorCalculate CIF customs value from goods, freight and insurance Import Duty CalculatorCalculate duty only from customs value and rate Landed Cost per Unit CalculatorFull per-unit landed cost including all import charges Landed Cost CalculatorImport landed cost with freight, duty and broker fees