Work out the true landed cost of an import into the UK — customs duty, import VAT and the total you’ll actually pay. Import VAT is charged on the duty-inclusive value, which is where most cost estimates go wrong. This calculator gets it right.
tradePhlo’s AI HS classifier suggests the commodity code from a plain-language product description — with the MFN duty, any FTA rate and VAT attached. Free to try.
When you import goods into the UK, you pay two separate charges at the border: customs duty and import VAT. They are calculated in a specific order, and getting the order wrong is the single most common landed-cost mistake.
Customs value (CIF) = goods value + freight & insurance to the UK borderCustoms duty = customs value × duty rate (from the commodity code)Import VAT = (customs value + customs duty) × VAT rateTotal landed cost = customs value + duty + import VAT
The key point: import VAT is charged on the duty-inclusive value, not just the price of the goods. So duty is effectively taxed twice — once as duty, then again inside the VAT base. On a £10,000 shipment at 6% duty, that compounding adds up quickly.
A correct commodity code is what drives the whole calculation — it sets the duty rate, whether a free-trade-agreement preference applies, and any specific (per-unit or per-kg) duties on top of the percentage. If you’re unsure of the code, classify your product free first.
Import VAT is charged on the customs value plus the customs duty (and plus certain other costs such as freight to the UK border). It is not charged on the bare goods value, which is why an accurate estimate has to add duty before applying VAT.
The customs value is normally the price paid for the goods plus the cost of freight and insurance up to the point the goods enter the UK. Duty and import VAT are both calculated from this figure, not the ex-works price.
The duty rate comes from the goods’ commodity (HS) code under the UK Global Tariff. tradePhlo’s free AI classifier returns the code, the MFN duty rate, any preferential FTA rate and the VAT rate from a plain-language description.
Yes. If the goods originate in a country the UK has an FTA with and they meet that agreement’s rules of origin, the preferential duty rate — often 0% — applies instead of the standard MFN rate. Tick the FTA box above to see the effect.