Duties & taxes
How import duty and VAT are calculated
Customs value, duty, VAT and fees — with a worked example so you can price your goods correctly.
6 min read
Start with the customs value
Most countries charge duty on the CIF value: goods + freight + insurance to the border. A few, including the US, Canada and Australia, use the goods value only (FOB).
Then duty, then VAT
Duty = customs value × duty rate.
VAT (or GST) = (customs value + duty) × VAT rate. Businesses can usually reclaim import VAT; duty is a real cost.
Worked example
Goods USD 10,000 + freight USD 1,500 + insurance USD 35 = customs value USD 11,535.
Duty at 12% = USD 1,384. VAT at 19% on USD 12,919 = USD 2,455.
With an EUR.1 certificate under the EU–Egypt agreement, duty drops to 0% and VAT to USD 2,192.
Put this guide to work
General guidance only — confirm rates and requirements with a customs broker for your shipment.