How are UK import charges calculated?

Import duty is charged on the customs value, which is the goods value plus shipping and insurance (CIF). Import VAT is then charged at 20% on the duty-inclusive total — that is, on goods plus shipping plus the duty itself. Couriers usually add a clearance or handling fee on top. The tool layers these in the correct order to produce the landed cost.

What is the £135 rule?

For consignments of goods with a value of £135 or less, no customs duty is charged, and VAT is generally collected at the point of sale by the seller rather than at the border. The calculator applies this: below the £135 goods threshold it sets duty to zero. Above it, duty and import VAT apply at the border as normal.

What duty rate should I use?

Duty rates depend on the product's commodity code in the UK Trade Tariff and the country of origin. Many goods fall between 0% and 12%, but some categories are higher and trade agreements can reduce rates to zero. Look up your exact commodity code on the government's UK Trade Tariff tool and enter that rate for an accurate estimate.

Is VAT charged on the duty?

Yes. UK import VAT is calculated on the value of the goods plus shipping plus the import duty — so you effectively pay VAT on the duty as well. This is why the order of calculation matters and why import charges can be higher than people expect. The calculator follows this official sequence.

Does this include the courier handling fee?

It can. Couriers such as Royal Mail, DHL, and FedEx typically charge a clearance or handling fee (often a few pounds to around £12) for processing customs on your behalf. Enter your courier's fee and it is added to the landed cost. This fee is not a government charge but is still part of what you pay.

United Kingdom Import Duty & Customs Calculator

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The UK Import Duty & Customs Calculator estimates the full landed cost of bringing goods into the United Kingdom — not just the price you paid, but the duty, import VAT, and courier handling fees that arrive with the parcel. Import charges in the UK are layered in a specific order, and because VAT is charged on the duty too, the final bill is often higher than buyers expect. This tool applies the official sequence, including the £135 low-value consignment rule, so you can see the true cost before you buy.

How it works

The charges build up on the customs value, which is the goods price plus shipping and insurance (CIF):

customs_value = goods + shipping_insurance
duty          = customs_value × duty_rate        (0 if goods ≤ £135)
import_vat    = (customs_value + duty) × 20%
landed_cost   = customs_value + duty + import_vat + handling_fee

Note the order: VAT is charged on the duty-inclusive total, so you pay 20% on the duty as well. For consignments where the goods value is £135 or less, customs duty is waived (and VAT is usually collected by the seller at checkout instead of at the border).

Example

You buy goods for £500 with £40 shipping, at a 6% duty rate, with a £12 courier handling fee:

Customs value = £540.
Duty = £540 × 6% = £32.40.
Import VAT = (£540 + £32.40) × 20% = £114.48.
Landed cost = £540 + £32.40 + £114.48 + £12 = £698.88.

Notes

Duty rates depend on your product’s commodity code and origin — find the exact rate in the UK Trade Tariff. Excise goods (alcohol, tobacco) carry additional duties not modelled here. This is an estimate; everything is calculated in your browser and nothing is uploaded.