Free tool
UK Import Duty Calculator
Estimate customs duty, import VAT and the landed cost per unit of a shipment before you commit to a price. Enter your goods value, freight, insurance and duty rate, and the calculator does the rest.
Duty, import VAT and landed cost- Uses the UK valuation basis
- Free, no sign-up
In short
This UK import duty calculator estimates the customs duty and import VAT on goods brought into Great Britain, and the landed cost per unit. Duty is charged on the customs value, which is the price of the goods plus transport and insurance to the UK border, at the rate set by the goods' commodity code. Import VAT is then charged on the customs value plus duty and onward delivery costs within the UK.
Your estimate
- Customs value
- £0.00
- Customs duty
- £0.00
- Value for import VAT
- £0.00
- Import VAT
- £0.00
- Total landed cost
- £0.00
Landed cost per unit
£0.00
Excludes import VAT, which you can normally reclaim.
An estimate for planning only, not tax advice. It assumes the transaction value method, a single duty rate for the shipment and no excise, anti-dumping or other additional duties.
Get your landed costs checked
The method
How UK import duty is calculated
Every customs duty calculator for the UK follows the same basic sequence. This is what ours does, and what HMRC expects.
- 01
Find the commodity code
Every product has a commodity code in the UK Trade Tariff. The code sets the duty rate, and whether any other measures such as quotas or additional duties apply.
- 02
Confirm the country of origin
Origin is where the goods were made, not where they were shipped from. It decides whether a preferential rate under a trade agreement could apply.
- 03
Work out the customs value
Take the price paid for the goods and add transport, insurance and loading costs up to the point the goods enter the UK. Foreign currency amounts are converted to sterling.
- 04
Apply the duty rate
For most goods, duty is a percentage of the customs value. Some goods carry a specific duty instead, such as an amount per kilogram.
- 05
Add import VAT
Import VAT is charged on the customs value plus duty, plus incidental costs such as transport to the first destination in the UK. For most goods the rate is the standard 20%.
- 06
Work out landed cost per unit
Add the goods, freight, insurance, duty and any non-reclaimable costs, then divide by the number of units. If you are VAT-registered, import VAT is usually reclaimable and sits outside your landed cost.
Worked example
A worked import duty example
Illustrative figures only, for a shipment of 1,000 units. The 4% duty rate is an example, not the rate for any particular product.
| Line | How it is worked out | Amount |
|---|---|---|
| Goods value | Price paid to the supplier, in sterling | £10,000.00 |
| Freight and insurance to the UK border | Shipping and insurance up to the UK port | £1,200.00 |
| Customs value | Goods value plus freight and insurance | £11,200.00 |
| Customs duty | Customs value × 4% (illustrative rate) | £448.00 |
| Delivery from port to warehouse | UK transport to the first destination | £300.00 |
| Import VAT | (£11,200 + £448 + £300) × 20% | £2,389.60 |
| Landed cost per unit | (£10,000 + £1,200 + £448 + £300) ÷ 1,000, excluding reclaimable VAT | £11.95 |
Illustrative only. Real shipments may also include customs clearance or broker fees, which are added to the VAT value and to your landed cost.
Classification
Commodity codes and HS codes in the UK
A commodity code is the classification number for your product. The first six digits are the international Harmonized System, which is why people often call it an HS code. The UK adds further digits for its own tariff, and import declarations use a ten-digit code.
You can look up codes and their duty rates in the UK Trade Tariff. Classification can be harder than it looks: two similar products can sit under different headings with very different rates, depending on material, function or how they are put together.
A code from your supplier or freight forwarder is a useful starting point, but it is worth checking it yourself. The duty you pay, and the duty HMRC may later ask for, follows the code that was declared.
Trade agreements
Preferential duty rates and rules of origin
The UK has trade agreements with the EU and many other countries that can reduce duty, often to zero. The reduced rate only applies if the goods originate in the partner country under that agreement's rules of origin, and if you claim it on the import declaration.
Origin is where the goods were grown, produced or manufactured. It is not necessarily where they were bought or shipped from. Goods made in China and bought from a warehouse in the EU, for example, do not become EU-originating just because they travelled through the EU.
To claim a preferential rate you need proof of origin, such as a statement on origin from the exporter, and you need to keep the records. The GOV.UK rules of origin guidance sets out the rules for each agreement. Our import accounting service checks whether your goods qualify.
Low-value goods
The £135 rule for low-value consignments
Goods sent to Great Britain in a consignment worth £135 or less are treated differently. Customs duty is not currently charged on non-excise goods at that value, and instead of import VAT at the border, the seller (or the online marketplace, where one is involved) charges UK VAT at the point of sale.
The £135 is based on the value of the goods themselves, which is usually the price they were sold for, and it applies to the whole consignment rather than each item. Transport and insurance are left out where they are shown separately. If the customer is a UK VAT-registered business that provides its VAT number, the customer accounts for the VAT through the reverse charge instead.
The government has confirmed it will remove the customs duty relief for low-value imports, on a date still to be set in regulations. You can follow progress in the GOV.UK policy paper on low-value imports. The calculator is designed for commercial shipments above £135.
Cash flow
Postponed VAT accounting and import VAT
If you are VAT-registered, you can use postponed VAT accounting (PVA) to account for import VAT on your VAT return instead of paying it at the border. You declare the import VAT and reclaim it on the same return, subject to the normal rules, so for most businesses the net cash effect is nil. No approval from HMRC is needed, but you must tell your freight forwarder or customs agent in writing before they make the declaration.
The figures come from your monthly postponed import VAT statement, which you download from HMRC. Missing statements are one of the most common reasons import VAT is claimed incorrectly. Read our guide to postponed VAT accounting, or see how we handle it in our VAT returns service.
What this calculator does and does not do
The import duty calculator gives a fast, reasonable estimate. It is not a customs declaration or advice, and some situations need a closer look.
What it does
Builds the customs value from goods, freight and insurance- Applies the duty rate you enter to the customs value
- Calculates import VAT at the rate you choose
- Shows total landed cost and cost per unit
- Separates reclaimable import VAT from landed cost
What it does not cover
- Choosing or confirming your commodity code
- Checking whether your goods meet rules of origin
- Specific duties, quotas, anti-dumping or other additional duties
- Excise goods such as alcohol, tobacco and vapes
- Northern Ireland and EU at-risk rules
Import regularly? Get your landed costs into your books properly
We bring duty, freight and import VAT into your cost of goods sold at SKU level, so your margins reflect what each product really costs.
