Calculating Import Duties
When importing goods into the EU, various charges apply: customs duty, import VAT, and possibly excise duties. Here's how to calculate costs correctly.
The Three Main Charges
Most imports incur these charges:
- Customs duty: 0-17%, depending on product category
- Import VAT: 19% (reduced 7% in Germany)
- Excise duties: Only on specific goods (alcohol, tobacco, energy)
Calculation Basis: Customs Value
All calculations are based on the customs value, which comprises:
- Goods value (purchase price per invoice)
- Freight costs to EU border
- Insurance costs
- License fees and commissions if applicable
💡 The customs value usually equals the CIF value (Cost, Insurance, Freight) to the first EU entry point.
Calculation Example
You import shoes from Vietnam for €10,000 (incl. freight):
- Customs value: €10,000
- Duty rate (leather shoes): 8%
- Duty: €10,000 × 8% = €800
- VAT base: €10,000 + €800 = €10,800
- Import VAT (19%): €10,800 × 19% = €2,052
- Total import charges: €2,852
⚠️ VAT is calculated on customs value PLUS duty – a common calculation error!