Duty & VAT (Value-Added Tax) are taxes that may be levied on goods and services, respectively, in some countries. Duty is a tax on imported goods, while VAT is a tax on the sale of goods and services. To calculate the duty on imported goods, you will need to know the applicable duty rate for the specific goods you are importing. Duty rates can vary depending on the type of goods, the country they are being imported from, and other factors. For Duty & VAT Calculation, you will need to know the applicable VAT rate, which can also vary depending on the type of goods or services being sold and the location of the sale.

How does a CDS relate to Duty & VAT calculation?

To calculate duty & VAT calculation using customs declaration software, you will typically need to input information about the goods being imported. Including the type of goods, the country of origin, the value of the goods, and other relevant details. Therefore the software will then use this information to determine the applicable duty & VAT calculation  rates. And it will calculate the total amount of duty & VAT calculation due on the imported goods.

How does CDS perform Duty & VAT Calculation

You must determine the value of the items you brought into the UK. And add it to box 22 of your import declaration in order to determine the amount of VAT that is owed.

You must add up the following factors to determine the value:

  • All fees associated with importing goods into the UK, including excise duty and customs duty (do not include the VAT itself)
  • How much any incidental costs will cost.


The value of your goods are determining to customs must add to the total. The import VAT value must take into account any known transportation expenses. It is for moving the goods to a location other than the UK at the time the goods are imported.


The Total Landed Cost Calculator is a powerful tool for customs brokers and importers to accurately calculate the cost of import duties and VAT in real-time. It ensures compliance with regulations and reducing the risk of unexpected expenses.

How does CDS perform Duty & VAT Calculation

A lower import valuation is allowed for some works of art, antiques, and collector’s items. If you want to lower the import valuation, you must:
  • Utilising the appropriate duty method, determine the value of the duty.
  • Include any further expenses.
  • Add 25% to the total.
The value is subjected to the 20% rate, which lowers the actual VAT rate to 5%.

What will happen next?

Data Element 4/10-11 of the import declaration should  add to reflect the value of your goods for VAT purposes.

You must calculate the amount of VAT yourself if you believe the Customs Declaration Service’s calculation is not correct.


You must enter if you need to do this:

  • Data Element 4/3-8 value in the amount column with the code “VAT”


The duties, levies, and other costs declared in data element 4/10-11 or data element 4/3-8 are added to the total value to determine the amount of VAT that is owed, according to the Customs Declaration Service.

You must declare additional costs in Data Element 4/9 when they are not included in the total invoice value or the other value data elements (and must be included in the overall VAT value).

Duty Calculation

You might require to complete a valuation declaration for duty purposes if the goods are subject to customs duty, which is a fee assess based on the item’s value. The declaration provides details that are used to calculate the goods’ customs value. 

When a valuation declaration for import VAT is required for goods that are not subject to duty but are subject to VAT at the standard rate, the following conditions must  meet:

  • The value is greater than £6,500 
  • Requested by Customs Office


The importer is registered for VAT and: 

  • The goods are not for business use
  • Input tax deduction will not  permit.
  • The goods’ value is not calculated using the customs valuation method. 1


For VAT-only entries, there are no provisions for registering a general valuation statement. Where required, individual valuation declarations must be submitted.

Duty & VAT Calculation

Why is duty & VAT calculation important through Customs Declaration Software?

Calculating duty and VAT through customs declaration software is important because it helps to ensure that all applicable taxes and duties are accurately calculated and properly paid when importing goods into a country.


Paying the correct amount of duty and VAT is important for several reasons:


  • Compliance: Accurately calculating and paying duty and VAT helps businesses and individuals comply with customs regulations and avoid potential fines or penalties for non-compliance.
  • Cost: Incorrectly calculating duty and VAT can result in businesses and individuals overpaying or underpaying these taxes, which can impact their bottom line. Using customs declaration software to accurately calculate these taxes can help businesses and individuals minimise their costs.
  • Efficiency: Customs clearance can be a time-consuming process, and accurately calculating and paying duty and VAT is an important part of this process. Using customs declaration software can help to streamline the clearance process and avoid delays.


Overall, using customs declaration software to accurately calculate and pay duty and VAT is important for compliance, cost, and efficiency when importing goods into a country.


So get your journey started and book a demo.


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About iCustoms

iCustoms is an all-in-one solution helping businesses automate customs processes more efficiently. With AI-powered and machine-learning capabilities, iCustoms is designed to streamline your all customs procedures in a few minutes, cut additional costs and save time.