Customs systems worldwide use a layered tax structure: duty first (assessed on CIF), then VAT (assessed on CIF + duty). This means you can't simply add the rates together — VAT effectively taxes the customs duty as well. A 5% duty + 20% VAT works out to about 26% total tax burden, not 25%, because of the compounding.
Import Export Tax Calculator
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Updated: April 2026
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local_shipping Shipment Details
$
$
$
$
$
analytics Landed Cost
Total Landed Cost
$12,536
Per unit: $125.36 · Markup: +25.4%
FOB (product)
$10,000
Freight
$800
Insurance
$54
CIF
$10,854
Duty
$543
VAT
$1,140
Interpretation
Significant import overhead — high duties or expensive freight
tips_and_updates Tips
- • Duty is always calculated on CIF, not just product cost — freight inflates your duty bill
- • VAT is layered on top of CIF + duty — increasing the effective tax substantially
- • VAT is usually recoverable for VAT-registered businesses
- • Tariff classification (HS/HTS code) is the biggest variable in your duty rate
- • Free trade agreements can drop duty to 0% for qualifying goods
- • Always verify with a customs broker for high-value or recurring shipments
How to Use This Calculator
1
Enter shipment value
Input product unit cost and quantity.
2
Enter freight and rates
Provide shipping cost, duty rate, and VAT rate.
3
Read tax burden
See duty, VAT, and total tax due to customs.
The Formula
Customs authorities worldwide use CIF as the basis for assessing duty. VAT is then layered on the CIF + duty subtotal — so VAT effectively taxes the duty as well. This is why high-VAT countries can dramatically inflate the all-in tax cost even with modest customs duty rates.
Duty = CIF × Duty% • VAT = (CIF + Duty) × VAT% • Total Tax = Duty + VAT
lightbulb Variables Explained
- CIF Cost + Insurance + Freight (basis for duty)
- Duty Rate Tariff rate for the HS/HTS classification
- Customs Duty CIF × duty rate
- VAT Rate Country-specific value-added tax rate
- VAT Amount (CIF + Duty) × VAT rate
- Total Tax Combined duty + VAT (and other excise where applicable)
tips_and_updates Pro Tips
1
Duty is always calculated on CIF, not just product cost — freight inflates your duty bill
2
VAT is layered on top of CIF + duty — increasing the effective tax substantially
3
VAT is usually recoverable for VAT-registered businesses
4
Tariff classification (HS/HTS code) is the biggest variable in your duty rate
5
Free trade agreements can drop duty to 0% for qualifying goods
6
Always verify with a customs broker for high-value or recurring shipments
Frequently Asked Questions
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Data sourced from trusted institutions
All formulas verified against official standards.