1. What is UK Duty and VAT?

The UK charges import duty on goods from outside the UK, followed by Value Added Tax (VAT) on the total value including duty. This calculator helps estimate these costs for imported goods.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( CIF \) — Cost, Insurance, and Freight value of goods
• \( Duty Rate \) — Percentage duty rate for the goods
• \( VAT Rate \) — UK VAT rate (typically 20%)

Explanation: Duty is calculated first on the CIF value, then VAT is calculated on the sum of CIF and duty.

3. Importance of Accurate Calculation

Details: Accurate duty and VAT calculation is crucial for import cost estimation, pricing strategy, and customs compliance when importing goods into the UK.

4. Using the Calculator

Tips: Enter CIF value in £, duty rate as percentage (e.g., 5 for 5%), and VAT rate (default is 20%). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is CIF value?
A: CIF stands for Cost, Insurance, and Freight - the total value of goods including shipping and insurance costs to the UK border.

Q2: How do I know the duty rate?
A: Duty rates vary by product type. Check the UK Trade Tariff or consult with customs authorities for your specific goods.

Q3: Is VAT always 20%?
A: Most goods are 20%, but some items have reduced rates (5%) or are zero-rated. Check current UK VAT rates.

Q4: Are there additional fees?
A: This calculator doesn't include potential handling fees, customs clearance charges, or excise duties on specific goods.

Q5: Can I use this for EU imports?
A: Since Brexit, UK VAT and duty rules apply to EU imports, but rules may differ for Northern Ireland under the protocol.