EU Import VAT Calculator — Customs Duty, CIF Value & Landed Cost

How to calculate EU import VAT step by step

Importing goods into the EU always involves at least two separate charges: customs duty and import VAT. They are calculated in sequence, each building on the previous step.

Step 1 — Determine the CIF value (customs base)
CIF = goods value on invoice + shipping cost to EU border + insurance cost.
If your supplier quotes FOB (Free on Board) or EXW (Ex Works) prices, you must add freight and insurance yourself. The CIF value is the base used by EU customs for all duty and VAT calculations — not the ex-works or FOB price.

Step 2 — Calculate customs duty
Customs duty = CIF value × TARIC duty rate for your product category and origin country.
Duty rates are set by the EU Common Customs Tariff and are identical across all 27 member states. Only the VAT rate differs by destination country.

Step 3 — Calculate the import VAT base
Import VAT base = CIF value + customs duty amount.
Under EU VAT Directive Article 85, import VAT is applied to the combined value of goods and duty — not the goods value alone.

Step 4 — Apply the destination country's VAT rate
Import VAT = import VAT base × destination country's standard VAT rate.
Most goods are taxed at the standard rate. Reduced rates may apply to food, pharmaceuticals, and books depending on the country.

Step 5 — Add it all together
Total landed cost = goods value + shipping + insurance + customs duty + import VAT.
This is the true cost of the goods arriving at your EU warehouse or customer's door.

Worked example: Goods worth €1,000 shipped from the US with €150 shipping and €20 insurance. Product: consumer electronics (14% duty). Destination: Germany (19% VAT).

• CIF = €1,170
• Customs duty = €1,170 × 14% = €163.80
• VAT base = €1,170 + €163.80 = €1,333.80
• Import VAT = €1,333.80 × 19% = €253.42
• Total landed cost = €1,170 + €163.80 + €253.42 = €1,587.22

Note: goods covered by the WTO Information Technology Agreement (ITA) — including most smartphones, laptops, and computing hardware — are subject to 0% customs duty from all WTO member countries, regardless of origin. This is already reflected in the calculator for the relevant product categories.

Customs duty rates by origin country

The EU applies Most Favoured Nation (MFN) rates to countries without a trade agreement — including the United States, China, and most other trading partners. Countries with preferential trade agreements benefit from reduced or zero duty rates:

• United Kingdom — under the Trade and Cooperation Agreement (TCA), most goods qualify for 0% duty if they meet the rules of origin. For UK goods to qualify, they must be "substantially transformed" in the UK. UK exporters must provide a statement of origin on the commercial invoice or a supplier's declaration. Without proof of preferential origin, the standard MFN rate applies as if the goods came from any other non-agreement country. Clothing and textiles are a notable exception: goods made from non-UK/EU yarn often do not satisfy preferential origin requirements and are dutiable at the MFN rate.
• Canada — under CETA (Comprehensive Economic and Trade Agreement), most industrial goods enter the EU duty-free.
• Japan — under the EU–Japan Economic Partnership Agreement, tariffs on most goods have been eliminated or are being phased out.
• South Korea — the EU–Korea FTA, in force since 2011, eliminates duties on almost all goods.

For goods covered by the Information Technology Agreement (ITA) — smartphones, laptops, and most computing equipment — duties are zero from all WTO member countries regardless of origin.

EU de minimis thresholds explained

€150 customs duty threshold
Goods entering the EU with a customs (CIF) value of €150 or less are exempt from customs duty. Import VAT still applies to all consignments regardless of value — the old €22 VAT exemption was abolished on 1 July 2021.

IOSS — Import One-Stop Shop (for e-commerce sellers)
Non-EU sellers shipping goods valued at €150 or less directly to EU consumers can register for IOSS. Under IOSS, VAT is collected at checkout at the point of sale and remitted to EU tax authorities through a single monthly filing. The buyer pays no additional import VAT at the border, and the shipment clears customs faster.

If you are selling B2C into the EU and not registered for IOSS, your customers will face import VAT charges on delivery — a significant cause of cart abandonment and failed deliveries for e-commerce. VAT-registered businesses importing on behalf of customers should also verify their EU VAT number is active before completing a transaction.

For shipments over €150
Standard customs duty and import VAT apply as calculated above. There is no registration scheme equivalent to IOSS for higher-value goods — duty and VAT must be paid to the customs authority in the destination EU country at the time of import.

Can businesses reclaim EU import VAT?

Yes — for VAT-registered businesses importing goods for business use, import VAT is fully recoverable as input tax on the next VAT return in the EU country of importation. This makes import VAT a cash-flow cost rather than a permanent expense.

To reclaim import VAT you need:

• A valid VAT registration number in the EU destination country (OSS registration does not cover import VAT reclaim — you need country-specific VAT registration)
• The customs entry document (SAD — Single Administrative Document, or equivalent electronic declaration) as evidence of the import VAT paid

For EU-registered importers bringing in goods regularly, most countries offer deferred import VAT accounting, allowing VAT to be accounted for on the VAT return rather than paid upfront at the border — improving cash flow significantly.

For B2B cross-border invoicing after clearance, use the Advanced VAT Calculator to determine the correct VAT treatment for your transaction. Before importing from a new supplier, check their EU VAT number →

For non-VAT-registered importers (consumers and small businesses below threshold)
Import VAT is an irrecoverable cost. It is paid to the customs authority and cannot be reclaimed. This is the relevant calculation for direct-to-consumer e-commerce imports.

Importing from China into the EU

China is the EU's largest single import partner. Goods from China are subject to the standard MFN TARIC duty rates — the same rates applied to all non-agreement countries. These typically range from 0% (electronics covered by the ITA) to 12% (clothing) to 17% (footwear).

Anti-dumping duties
Several product categories imported from China carry additional anti-dumping or countervailing duties on top of standard TARIC rates. Current major examples include steel and aluminium products, solar panels and modules, ceramic tiles, e-bikes and bicycles, and certain chemical products. Anti-dumping duties can be substantial — sometimes exceeding 30–40% of the goods value — and are not reflected in the standard category rates in this calculator. For products in affected categories, always verify via the TARIC consultation database before planning your import budget.

Rules of origin
If your goods are manufactured in China from materials originating elsewhere, the standard China MFN rate applies. If goods were originally produced elsewhere but merely processed or assembled in China, a different origin determination may apply. The EU's rules of origin rules determine this — consult a customs broker for complex supply chains.

Import VAT rates by EU country (2026)

Import VAT is charged at the destination country's standard VAT rate. VAT paid on import can usually be reclaimed as input VAT by VAT-registered businesses.

What is CIF value?

CIF stands for Cost, Insurance, and Freight. It is the standard customs valuation basis used across the EU. The CIF value equals the price of the goods plus all costs incurred in transporting the goods to the EU border (port or airport of entry), including shipping charges and insurance premiums. Any costs incurred after the goods arrive at the EU border — import duty, local delivery — are not part of the CIF value.

If your seller quotes prices on an FOB (Free on Board) or EXW (Ex Works) basis, you need to add the freight and insurance costs yourself to arrive at the CIF value for customs purposes.

Who pays import VAT?

Import VAT is typically paid by the importer of record — either the buyer (if importing for their own use or business) or the seller (if using Delivered Duty Paid / DDP Incoterms). For B2B imports, VAT-registered businesses can usually recover import VAT as input tax on their next VAT return, making it a cash-flow cost rather than a permanent one. For consumers (non-VAT-registered importers), import VAT is an irrecoverable cost.

Before completing a B2B import transaction, check your supplier's EU VAT number →

FAQ

Can I reclaim import VAT?
Yes, if you are VAT-registered in the destination EU country, import VAT is recoverable as input tax on your VAT return. You need the customs entry document (SAD / C88) as evidence. Use the Advanced VAT Calculator for B2B cross-border invoicing after goods are cleared.

Are duty rates the same across all EU countries?
Yes. Customs duty rates are set at EU level (the Common Customs Tariff) and are identical regardless of which EU country the goods enter. The only variable between countries is the VAT rate applied at import.

What about excise duty?
This calculator does not cover excise duty, which applies to alcohol, tobacco, and energy products. These goods have additional charges that vary significantly by product and country.

What if my goods are split across multiple shipments?
Each shipment is assessed independently at import. The €150 duty threshold applies per consignment, not per order.

Do duty rates change?
TARIC rates are updated frequently. The rates in this calculator are indicative category averages. For shipments of significant value, verify the exact rate using the EC's TARIC consultation database or a licensed customs broker.

What is the TARIC database and how do I use it?
TARIC (Integrated Tariff of the European Union) is the official EU database of all import duty rates, trade measures, and customs regulations. It is maintained by the European Commission and updated daily. To look up the exact duty rate for your product, go to the TARIC consultation tool, search by product description to find your CN or TARIC code, select your origin country, and the applicable rate will be shown. The calculator on this page uses TARIC-based category averages as indicative estimates.

Do I pay customs duty on goods from the UK after Brexit?
Most goods originating in the UK (i.e., substantially manufactured there) enter the EU duty-free under the Trade and Cooperation Agreement. However, goods must be accompanied by proof of UK origin — a statement of origin on the commercial invoice. Without this, standard MFN duty rates apply. UK goods that were originally manufactured outside the UK and merely shipped through the UK are not eligible for preferential rates.

What does "landed cost" mean?
Landed cost is the total cost of a product by the time it arrives at its final destination — including the purchase price, international shipping, insurance, customs duty, and import VAT. It is the true cost of imported goods and is essential for accurate profit margin calculations when sourcing internationally.