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A quick note before you start:

Not all goods imported into the UK are liable for import duty and VAT. Some items are zero-rated or exempt.

For a quick overview, see our ‘Basics of importing’ page. If you’re unsure about your specific goods, contact our Imports Team for personalised guidance.

If your goods are liable for duty and/or VAT, the following simple 4-step guide will help you calculate the approximate amounts. 

 Why not click here to try our Duty and VAT Calculator

 1. Convert the foreign value of your goods, into GBP (Sterling)

You must use the official HMRC exchange rates published each month for customs purposes (not bank or commercial rates).

These rates ensure your calculation matches what UK Customs will use.

See our Exchange Rates page for the latest HMRC monthly rates.

page to understand which costs are included.

2. Calculate the Total Customs Value (Door to Door)

The total value declared to UK Customs is not always just the price you paid the supplier. It depends on the Incoterm (Terms of Sale) agreed with your seller.

• If the price includes shipping to the UK (e.g. under DDP or “free shipping”), you usually pay duty and VAT only on the price paid to the supplier.
• If shipping costs are separate or you arrange transport yourself (e.g. under EXW or FOB), those costs may need to be added to the customs value.

This directly affects how much duty and VAT you pay.

Read our ‘Incoterms explained‘ page, to enable you to find out, and calculate import duty and VAT more accurately.

3. Calculating basic Import Duty (If applicable)

Now that you have got your total value of goods (including any associated shipping costs) in GB Pounds, you next need to know what percentage of Duty has been set by UK Customs for your particular goods.

To do this you need to visit either the UK’s .GOV online tariff, or the European TARIC website, via our ‘classification codes‘ page. Once there, search for your goods under description and enter the Country of Origin. This should then allow you to find the commodity code (keep this 10-digit code, as you will need to ensure that we use this code when we declare your goods to UK Customs) and the rate of Import Duty that applies to your goods. Then simply multiply your total value of goods by the Customs Duty rate. This is the approximate amount of Import Duty that you would have to pay. ukimports

4. Calculating the Import VAT (If applicable)

The Standard rate of VAT in the UK increased to 20.0% on the 4th January 2011 (up from the previous rate of 17.5%). So, to calculate the VAT, you need to do the following:

Add the amount of Duty, that you calculated (if any was applicable), on to the total value of your goods (incl. the shipping costs, if necessary), then you have to add all the UK charges, such as Customs clearance and delivery costs (from port of arrival/Bonded Warehouse through to your door). Then, simply multiply this total amount by the rate payable (20.0% for Standard, 5.0% for Reduced rate or 0.0% for Zero-rated goods), to give an approximate amount of VAT that you would have to pay. ukimports

Note:
If you are unsure about how much to add for UK charges, then UK Customs has produced a guideline, in the form of JCCC Paper (05) 64 (click here to view)

Please remember that the Customs exchange rates change each month, therefore, the amount that you have just calculated, may change.

If your commodity code has additional duty codes / rates, please see our Taric Help page, for more information. ukimports

Email a member of our Imports Team to see whether your goods are eligible and to find out what UK Customs Forms need to be completed in order for Customs to clear your goods. ukimports

Phone us on 0800 690 6310, or email us at: enquiries@ukimportservices.com.

Other related pages

• Regular Sea Freight charges
• UK Customs Exchange Rates
• UK Customs Clearance
• Contact us