UK Landed Cost Calculator
Instantly calculate the total cost of importing goods into the UK, including customs duty, VAT, shipping, and insurance.
Calculate Import Costs
Enter your product value, shipping, and tax rates. The calculator instantly reveals your true landed cost, ensuring accurate pricing and budgeting for your UK imports.
Landed Cost Calculator
Calculate total import costs including HMRC duties and taxes.
Understanding Landed Cost
Key concepts for UK importers and e-commerce
The CIF Rule
HMRC calculates duty and VAT based on the CIF value (Cost, Insurance, and Freight). You cannot exclude shipping costs from your customs value declaration.
VAT on Duty
Unlike some countries, the UK charges VAT on top of the customs duty. Your VAT base is the CIF value plus the duty amount.
De Minimis Threshold
Goods valued at £135 or less (excluding shipping) may be exempt from customs duty, but VAT is still generally applicable on commercial imports.
Postponed VAT Accounting
UK VAT-registered businesses can often use Postponed VAT Accounting (PVA) to declare import VAT on their VAT return rather than paying it at the border, aiding cash flow.
Common UK Import Categories
Indicative duty and VAT rates for common import categories. Always verify exact rates using the official UK Global Tariff tool.
| Product Category | Typical Duty Rate | VAT Rate | Notes |
|---|---|---|---|
| 0% – 14% | 20% | Electronics & Tech (varies by origin) | |
| 0% – 12% | 20% | Clothing & Footwear (depends on material) | |
| 0% – 8% | 20% | Homeware & Furniture | |
| 0% | 20% | Books & Printed Matter (often duty-free) | |
| Variable | 0% or 20% | Foodstuffs (complex rules, some zero-rated) |
Landed Cost FAQ
Answers to the most frequently asked questions about calculating UK import costs and customs procedures.
Landed cost is the total price of a product once it has arrived at the buyer’s doorstep. It includes the original purchase price, freight shipping, insurance, customs duties, and local taxes like UK VAT.
UK import VAT is calculated on the ‘Customs Value’ (the cost of the goods plus shipping and insurance, known as CIF) plus any customs duty owed. The standard UK VAT rate is 20%.
In the UK, customs duty is generally not charged on imported goods with a customs value of £135 or less. However, VAT is still applicable on most commercial imports regardless of value.
HMRC calculates customs duty and VAT based on the CIF (Cost, Insurance, and Freight) value. This means you must include the cost of shipping and insurance to the UK border in your customs value calculation.
If your business is VAT-registered in the UK, you can typically reclaim the import VAT as input tax on your regular VAT return. Many businesses use Postponed VAT Accounting (PVA) to simplify this process without paying cash at the border.