Examples for calculating import duties
How is the VAT and customs duty calculated on a purchase ordered from abroad? Check the examples of orders and calculations. Levying of taxes means the assessment and payment of taxes. Levying taxes means determining and paying taxes. Levying customs duty means determining and paying a customs fee.
Example for calculating customs duty and import VAT:
You have ordered a blouse from China that costs 200 euros. The postage is 35 euros. The general customs duty rate on clothes is 12 %.
Customs duties are levied on the consignment because the goods are delivered from outside the EU and are worth more than 150 euros. As for VAT, the value limit for a VAT-free consignment is 22 euros.
If the consignment to be declared is transported by Posti, then Posti’s handling fee is added to the taxable amount for VAT. The handling fee in our examples is €2.90.
- The customs duty is 12 % of the value of the goods and the postage: (€200 + €35) x 0.12 = 28.20 euros
- The amount of VAT is 24 % of the taxable amount for import VAT: (€235 + €28.20 + €2.90) x 0.24 = 63.86 euros
The total import duties collected on the blouse is 92.06 euros.
Example for calculating import VAT:
You have ordered a blouse from the Canary Islands that costs 200 euros. The postage is 35 euros and Posti's handling fee is 2.90 euros. The amount of VAT imposed on the consignment is 24 % of the sum of the purchase price and transport costs, as the goods will be delivered from outside the fiscal territory of the EU.
- (€200 + €35 + €2.90) x 0.24 = 57.10 euros
A total of 57.10 euros in VAT is collected on the blouse.
Example of a food supplement order exempt from import VAT because the VAT amount is under 5 euros:
You have ordered food supplements from the United States that cost 25 euros. The postage is 5 euros and Posti's handling fee is 2.90 euros. No customs duties are levied because the limit for duty-free consignments is 150 euros. The value added tax on food is 14 % of the total price (purchase price + postage).
- (€25 + €5 + €2.90) x 0.14 = 4.61 euros
- The VAT rate is 4.61 euros.
No VAT is levied on the consignment because it amounts to under 5 euros, which is the minimum amount levied. The consignment must be cleared through Customs, however, because the value of the goods is over 22 euros.
When you use the customs duty calculator, you can estimate the amount of customs duties and VAT on your online purchases that are delivered from outside the EU.