How to Calculate Duty rates, taxes and VAT on your imports.

After receiving our great rates for your import whether via sea, air or courier, you proceed to make a booking with us, happy in the knowledge that your overheads are low and your profit margins are looking good…We remind you to take into account the friendly Tax Man who will be waiting patiently at customs for your goods to clear… Waiting to make sure you are paying the correct import duty rate on your cargo!

In some cases duty rates can be quite low, some goods even tax free, and in other cases they can be quite high, whatever your case maybe, don’t forget to take these extra charges into consideration.

 We can of course help you out with these calculations; however, if you know the correct duty rate, you can estimate this payment for yourself.

 Duty is charged on CIF value – which is Cost, Insurance, Freight

**VAT is charged on CIF value, the duty cost, and on the UK charges

 To calculate the duty rate simply add the cost of freight to the value of your goods goods and any insurance (CIF VALUE) Add this all together then add on the percentage of your duty rate.

 To calculate the VAT, Add 20% to CIF Value, add 20% to the duty rate, and add 20% to the UK charges

 Ta-Dah! There you have it, well done!

 Or you can simply drop us a line with details of your cargo and ask our dedicated imports team to assist you with your calculations.

 Remember if you are registered with Customs all VAT paid is claimed back at end of three month period.

 **VAT currently at 20% at time of writing this blog.

 

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