# UK Import Duty and Import VAT Calculator

> Source: https://netray.co/tools/uk-import-duty-and-vat-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Calculates UK customs value, duty and import VAT on goods arriving from the EU or elsewhere, and the cost you carry after VAT recovery.

## Category

regional

## Region

United Kingdom

## Industry

Manufacturing

## Audience

- Buyer
- Logistics manager
- Finance controller

## Tool

**Kind:** calculator

**Currency:** GBP 

**Inputs:**

#### Goods value (invoice)

**Key:** goods

**Type:** number

**Default:** 50000

**Min:** 0

**Step:** 500

**Unit:** GBP

#### Freight and insurance to UK border

**Key:** transport

**Type:** number

**Default:** 2200

**Min:** 0

**Step:** 100

**Unit:** GBP

**Help:** Include transport and insurance costs up to the point of entry to the UK.

#### Royalties, assists and other additions

**Key:** assists

**Type:** number

**Default:** 0

**Min:** 0

**Step:** 100

**Unit:** GBP

**Help:** Tooling or engineering supplied free to the seller, or royalties payable as a condition of sale.

#### Duty rate

**Key:** duty_rate

**Type:** slider

**Default:** 2.5

**Min:** 0

**Max:** 12

**Step:** 0.1

**Unit:** %

**Help:** From the UK Global Tariff or a preferential rate if origin rules are met.

#### Delivery to first UK destination

**Key:** inland

**Type:** number

**Default:** 450

**Min:** 0

**Step:** 50

**Unit:** GBP

**Help:** Included in the VAT base when the destination is known at import.

#### VAT rate

**Key:** vat_rate

**Type:** select

**Default:** 20

**Options:**

##### Standard 20%

**Value:** 20

##### Reduced 5%

**Value:** 5

##### Zero rate 0%

**Value:** 0

**Outputs:**

#### Customs value

**Key:** cv

**Expr:** goods + transport + assists

**Format:** currency

#### Import duty

**Key:** duty

**Expr:** cv * duty_rate / 100

**Format:** currency

#### Import VAT base

**Key:** vat_base

**Expr:** cv + duty + inland

**Format:** currency

**Description:** Customs value plus duty plus delivery charges to the first destination.

#### Import VAT

**Key:** vat

**Expr:** vat_base * vat_rate / 100

**Format:** currency

#### Total due to HMRC on import

**Key:** border_cash

**Expr:** duty + vat

**Format:** currency

**Primary:** true

#### Cost after VAT recovery

**Key:** net_cost

**Expr:** cv + duty + inland

**Format:** currency

**Primary:** true

**Chart:**

#### Cost and border payments vs duty rate

**Type:** line

**X:** duty_rate

**From:** 0

**To:** 12

**Steps:** 24

**Series:**

- border_cash
- net_cost

**Disclaimer:** Estimate only. It ignores excise duty, anti-dumping duty, safeguard measures, customs agent fees and quota rules. Check the commodity code in the UK Trade Tariff.

## Content

**Intro:** For a UK manufacturer buying components from the EU or Asia, the amount payable at the border depends on the customs value, the duty rate for the commodity code and VAT on top. This calculator follows the UK method so you can estimate border cash and the true cost after VAT recovery.

**Sections:**

#### How the UK computes duty and VAT

**Body:** Customs value is generally the transaction value plus transport and insurance to the UK border and certain additions such as royalties or assists. Duty is the customs value times the rate for the commodity code. Import VAT is then calculated on the customs value plus duty plus delivery costs to the first place of destination in the UK. A VAT registered business recovers that VAT on its return, or accounts for it on the same return if it uses postponed VAT accounting.

**Bullets:**

- Customs value = goods + transport/insurance + additions
- Duty = customs value x duty rate
- VAT base = customs value + duty + inland delivery

#### Worked example

**Body:** Goods worth GBP 50,000 with GBP 2,200 of freight and insurance give a customs value of GBP 52,200. At a 2.5 percent duty rate, duty is GBP 1,305. With GBP 450 delivery the VAT base is GBP 53,955 and 20 percent VAT is GBP 10,791. The amount due to HMRC at import is GBP 12,096, but after recovering VAT the cost to you is GBP 53,955. Move the slider to see how a zero rate preference changes both lines.

#### ERP and compliance notes

**Body:** Keep the commodity code, origin and customs value on the purchase line so landed cost can post correctly. If you use postponed VAT accounting, the cash outflow at the border disappears and the import VAT appears on the monthly return instead, which the deferment calculator in this set models. Duty paid is a real cost and should flow into the item cost.

#### Common mistakes

**Body:** Common errors include calculating VAT on goods value only, leaving out freight in the customs value, and forgetting the delivery costs in the VAT base. Another is using the wrong commodity code, which changes the duty rate. For goods from the EU, check origin rules under the UK and EU trade agreement before claiming a zero rate.

**Cta:** Netray can check commodity codes and customs values on your open purchase orders from your ERP data without sending it to a public service. Ask for a review if landed cost is a recurring surprise.

**Faq:**

#### Is import VAT charged on duty?

**Answer:** Yes. In the UK, import VAT is based on the customs value plus any duty, plus delivery costs to the first destination in the UK. That is why the VAT base in the calculator includes duty.

#### Can I get the VAT back?

**Answer:** A VAT registered business that uses the goods for taxable supplies normally recovers import VAT on its return, supported by the import record. The calculator therefore shows cost after VAT recovery as a separate figure.

#### What duty rate should I use?

**Answer:** Use the rate for the commodity code in the UK Global Tariff, or a preferential rate when your goods meet rules of origin and you hold proof of origin. If unsure, ask your customs agent before importing.

#### Does this include excise or anti-dumping duty?

**Answer:** No. Those are separate charges for specific goods. If your goods are subject to them, add them manually to the border payment and cost.

## Search terms

uk import duty calculator, uk import vat calculator, uk customs value calculation, uk duty and vat on imports from eu, import vat uk manufacturing parts, uk global tariff duty calculator, landed cost uk import

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