Costs and taxes
Calculating Customs on Commercial Imports: Duty, Purchase Tax and VAT in a Full Example
Three different taxes, each calculated on a different basis. How to find the product's customs tariff item and how to reach the final amount.
Commercial imports pay up to three taxes: customs duty, purchase tax and VAT. The duty and purchase tax rates depend on how the product is classified in the customs tariff, and VAT is calculated on the value including the preceding taxes.
Incorrect classification is the costliest mistake at this stage. It's worth settling before the order, not at the port.
What the full guide will cover
- How to find the product's tariff item in the customs tariff
- On what value each tax is calculated
- Trade agreements and certificate of origin: when duty is reduced
- What an authorized dealer gets back and what not
- A full calculation example, line by line
The full guide is being written. Have a question on this topic right now? Send us your product details and we'll get back to you with an answer.
On this topic on our site:Procurement and import management
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