EU customs duty is calculated on CIF value. VAT applies to CIF + duty.
Duty = CIF × Duty Rate. VAT = (CIF + Duty) × VAT Rate. Rates depend on HS code and country of origin.
How is EU Customs Duty Calculated?
Import duty into the EU is calculated on the CIF (Cost, Insurance, Freight) value—the value of goods plus insurance and freight to the first EU port. The formula is:
Duty = CIF Value × Duty Rate (%)
VAT = (CIF + Duty) × VAT Rate (%)
VAT is charged on the duty-inclusive value. Rates vary by member state (typically 17–27%; we use 20% as default). This calculator does not include other charges (e.g. customs handling fees).
CIF vs Other Incoterms
CIF means the seller pays cost, insurance, and freight to the port of destination; the buyer pays duty and VAT. DDP (Delivered Duty Paid) means the seller pays everything. FOB (Free on Board) means the buyer pays freight, insurance, duty, and VAT. CIF is commonly used as the customs valuation basis.
Duty Rates and TARIC
Duty rates depend on the HS code (Harmonized System) and country of origin. The EU TARIC database provides the applicable rates. Trade agreements (e.g. EU-UK TCA, EU-Japan EPA, EU-Canada CETA) may grant preferential (reduced or zero) duties—you must claim preference and meet rules of origin. For CBAM products, carbon costs may also apply: use our CBAM calculator.
Example
CIF: €10,000 | Duty: 5% | VAT: 20%
Duty = €500 | VAT base = €10,500 | VAT = €2,100 | Total = €2,600
Official resources
Duty = CIF × Rate
VAT = (CIF + Duty) × VAT %
Cost + Insurance + Freight to the first EU port. Base for customs duty.
From TARIC. Depends on HS code and country of origin. Preferential rates may apply under trade agreements.