UK Import Duty & VAT Calculator

How UK import duty and VAT are calculated

When goods arrive in the UK from outside the customs territory, HMRC charges import duty and import VAT. The maths is straightforward once you know the order things are added up.

Step 1, customs value (CIF)

Start with the invoice value of the goods (FOB), then add the cost of freight to the UK border and any insurance. That total is your customs value, sometimes called the CIF value.

Step 2, duty

Apply the duty rate for your commodity code from the UK Global Tariff. Rates range from 0% on many raw materials to 12% or more on finished consumer goods. A trade agreement (preferential origin) may reduce this to 0% if you can prove origin.

Step 3, import VAT

Import VAT is charged on the customs value plus the duty. So you pay VAT on the duty too. The standard rate is 20%. VAT-registered importers can use postponed VAT accounting (PVA) to declare and reclaim import VAT on the same return rather than paying at the border.

Other charges this tool does not include

Customs clearance fees, port handling, deferment account fees and any anti-dumping or countervailing duties are additional. For a full landed cost per unit, use the Landed Cost Calculator.