This example shows how import duty should be calculated.
Over the Internet, you buy a tailor-made suit in Hong Kong.
The value of the suit is € 200.
| Description | amount |
|---|---|
| Price of tailor-made suit | € 200 |
| Shipping costs (eg €25) | € 25 |
| Insurance costs (in this example €10) | € 10 |
| You owe customs duty on: € 200 + € 25 + € 10 = € 235 |
|
| Customs duty for importing this suit = 12%: 12 % of € 235 = |
|
| You owe turnover tax on: € 200 + € 25 + € 10 + € 28.20 = € 263.20 |
|
| Turnover tax (VAT) for this suit: 19% of € 263,20 |
€ 50.01 |
| Total duty | € 78.21 |
In most cases you will also be required to pay clearance and handling costs to the mail order or courier company.
You bought a tailor-made suit outside the European Union for € 200.
This tailor-made suit ultimately costs you € 313.21 plus the clearance and handling costs incurred by the mail order or courier company.
The duty you pay is: € 78.21 (€ 28.20 import duty and € 50.01 turnover tax (VAT)).
