About Duty and VAT
Internet shoppers beware
If you are purchasing goods from a foreign online site you may be liable for Duty and VAT when the goods arrive in the UK. Please 
click here for Customs advice.
click here for Customs advice.About Duty and VAT
This page is intended as an information resource for people who either use DHL for the first time, or, who receive an air express delivery from DHL for the first time. We hope you find it useful.
You don't have to be a business person to be an exporter or an importer
As Internet shopping becomes more popular, what is often not understood is that as soon as you hit the return key to purchase a product from another country, then effectively you become an importer and become liable for Duty and VAT payments.
It's not always about the purchasing!
If someone sends you a gift from abroad that is over £36 in value, you will also be obliged to pay the Duty and VAT unless the person who sent it has agreed to pay it themselves. Likewise, if you are the person sending you need to remember that if you don't take the time to include the proper invoices then your shipment could be held in customs or the person you are sending to may be charged too much Duty and VAT.
The bottom line is
If you are sending goods out of the European Union (EU) you will need to prepare aCustoms Invoice and if you are receiving a shipment you need to know that there could be Duties on top that may be billed after the shipment has been delivered.
Receiving Shipments
Buying Goods from other EU Countries
Buying Goods from Overseas Non EU Countries
About Duty
About VAT
General
You don't have to be a business person to be an exporter or an importer
As Internet shopping becomes more popular, what is often not understood is that as soon as you hit the return key to purchase a product from another country, then effectively you become an importer and become liable for Duty and VAT payments.
It's not always about the purchasing!
If someone sends you a gift from abroad that is over £36 in value, you will also be obliged to pay the Duty and VAT unless the person who sent it has agreed to pay it themselves. Likewise, if you are the person sending you need to remember that if you don't take the time to include the proper invoices then your shipment could be held in customs or the person you are sending to may be charged too much Duty and VAT.
The bottom line is
If you are sending goods out of the European Union (EU) you will need to prepare a
Customs Invoice and if you are receiving a shipment you need to know that there could be Duties on top that may be billed after the shipment has been delivered.Receiving ShipmentsBuying Goods from other EU CountriesBuying Goods from Overseas Non EU CountriesAbout DutyAbout VATGeneralReceiving Shipments
What is Customs Duty?
Customs duty is a tax charged on goods produced outside the EU. It is controlled by HM Customs & Excise. The purpose of Duty is to keep competition equal and fair and to bring the cost of imported goods up to the same cost as those produced within the EU. Once duty is paid, the goods are in 'free circulation' and can move throughout the EU without restriction.
What is Excise Duty?
Certain goods such as wines, spirits, cigars, cigarettes and tobacco are subject to what is called excise duty. When you buy excisable goods in the UK the price you pay includes this tax. However, if you import these goods either from the EU or from outside the EU, you will have to pay Excise Duty and VAT on them. The Excise Duty is often more than the cost of the goods, and private consumers buying excisable goods over the Internet should be extremely careful as there are different regulations governing the purchase of these goods on the Internet.
What is VAT?
Value Added Tax (VAT) a tax normally charged on the supply of goods (and services) made by a VAT registered business. However, imported goods are also subject to VAT. This is to prevent a purchaser gaining an unfair advantage by buying non-EU goods VAT free.
Why doesn't DHL include Duty & VAT charges in its tariff?
These payments are not included in the DHL shipment tariff, as our door-to-door service doesn't include the cost of paying taxes to Customs. It's also very difficult to know what the Duty payment will be as we ship to 228 countries, each with different Duty and VAT regulations.
Customs duty is a tax charged on goods produced outside the EU. It is controlled by HM Customs & Excise. The purpose of Duty is to keep competition equal and fair and to bring the cost of imported goods up to the same cost as those produced within the EU. Once duty is paid, the goods are in 'free circulation' and can move throughout the EU without restriction.
What is Excise Duty?
Certain goods such as wines, spirits, cigars, cigarettes and tobacco are subject to what is called excise duty. When you buy excisable goods in the UK the price you pay includes this tax. However, if you import these goods either from the EU or from outside the EU, you will have to pay Excise Duty and VAT on them. The Excise Duty is often more than the cost of the goods, and private consumers buying excisable goods over the Internet should be extremely careful as there are different regulations governing the purchase of these goods on the Internet.
What is VAT?
Value Added Tax (VAT) a tax normally charged on the supply of goods (and services) made by a VAT registered business. However, imported goods are also subject to VAT. This is to prevent a purchaser gaining an unfair advantage by buying non-EU goods VAT free.
Why doesn't DHL include Duty & VAT charges in its tariff?
These payments are not included in the DHL shipment tariff, as our door-to-door service doesn't include the cost of paying taxes to Customs. It's also very difficult to know what the Duty payment will be as we ship to 228 countries, each with different Duty and VAT regulations.
Buying Goods from other European Union (EU) Countries
Within the EU goods do not have to be declared to Customs. However, Excise Duty must be paid on excisable goods. DHL does not normally carry goods subject to Excise Duty.
| EU Countries | ||
| Austria | Germany | Netherlands |
| Belgium | Greece | Poland |
| Bulgaria | Hungary | Portugal |
| Cyprus | Ireland | Romania |
| Czech Republic | Italy | Slovakia |
| Denmark | Latvia | Slovenia |
| Estonia | Lithuania | Spain |
| Finland | Luxembourg | Sweden |
| France | Malta | United Kingdom |
Buying Goods from Overseas Non European Union (EU) Countries
What goods are subject to Duty & VAT?
All goods imported into the UK from outside the EU must be declared to HM Customs & Excise and, in most cases, are subject to customs duty & VAT. This includes goods bought over the Internet.
All goods imported into the UK from outside the EU must be declared to HM Customs & Excise and, in most cases, are subject to customs duty & VAT. This includes goods bought over the Internet.
About Duty
What is the rate of Duty?
The rate of Duty for any given product should be the same no matter into which EU country they are imported, but may differ depending upon the country of origin. Set annually by the EU, rates run from 1st January to 31st December and are published in a Customs Tariff issued by each EU country. Duty is usually percentage based, and averages between 5-9% with extremes of nil and 85%.
How is the rate determined?
Goods are classified using the Customs Tariff in order to arrive at the rate of Duty. The EU uses a ten digit coding and there are approximately 14,000 classifications.
What is the value for Duty?
Customs assess the amount of Duty to be paid based on the declared value of the goods plus the transport costs to the country of destination.
The rate of Duty for any given product should be the same no matter into which EU country they are imported, but may differ depending upon the country of origin. Set annually by the EU, rates run from 1st January to 31st December and are published in a Customs Tariff issued by each EU country. Duty is usually percentage based, and averages between 5-9% with extremes of nil and 85%.
How is the rate determined?
Goods are classified using the Customs Tariff in order to arrive at the rate of Duty. The EU uses a ten digit coding and there are approximately 14,000 classifications.
What is the value for Duty?
Customs assess the amount of Duty to be paid based on the declared value of the goods plus the transport costs to the country of destination.
About VAT
What is the value for VAT?
The value for VAT is the declared value of the goods plus the transport costs to the country of destination plus the customs duty.
Example of Duty calculation
Goods 2 special edition "Hits of the 80's" CD sets
Value of goods £80 +
Transport to the UK £35
Total value for Duty £115 x 3.5% Duty = Total Duty payable £4.02
Example of VAT calculation
Value of goods £80 +
Transport to the UK £35 +
Duty charges £4.02
Total value for VAT £119.02 x 17.5% = Total VAT payable £20.83
Therefore the total import Duty and VAT charges payable on import of these goods would be £24.85
The value for VAT is the declared value of the goods plus the transport costs to the country of destination plus the customs duty.
Example of Duty calculation
Goods 2 special edition "Hits of the 80's" CD sets
Value of goods £80 +
Transport to the UK £35
Total value for Duty £115 x 3.5% Duty = Total Duty payable £4.02
Example of VAT calculation
Value of goods £80 +
Transport to the UK £35 +
Duty charges £4.02
Total value for VAT £119.02 x 17.5% = Total VAT payable £20.83
Therefore the total import Duty and VAT charges payable on import of these goods would be £24.85
General
Who is liable to pay Duty and VAT charges?
The person receiving the shipment is legally obliged to pay Duty and VAT except where the person sending the shipment has agreed to accept these charges in the contract of sale. Private individuals intending to buy goods on the Internet from non-EU countries should be particularly careful. Often the price advertised on the supplier's website will not include UK Duty and VAT and you will be expected to pay this once the shipment arrives in the UK.
How are the charges paid?
We will not be able to deliver your goods to you until we have paid the Duty and VAT charges on your behalf. Some businesses have their own accounts with HM Customs and Excise and we merely arrange for their account to be directly debited by Customs. Many other importers, particularly private consumers do not have an account with Customs. We must therefore pay the charges on your behalf before we can deliver your goods to you. We will then invoice you for the Duty and VAT we have paid over on your behalf. A small administration fee will be added to the Duty and VAT invoice we send you.
What is the administration fee?
The fee for business customers is £10 or 2% of the shipment value, whichever is the greater. The growth of Internet shopping has led us to introduce a different administration fee for private individuals. This is because net shoppers are usually buying infrequently and purchasing low cost items such as CDs, DVDs or software. We felt that low usage such as this merited a different fee structure. We charge £1.25, or 2% of the shipment value, whichever is the greater. This compares very favourably with our competitors and we are, as far as we are aware, the only air express carrier who has introduced a special rate for private individuals.
This is not unfair to our business customers as they have a choice. If they are importing on a frequent or high volume basis they can choose to open their deferment account with Customs. Many however find it more cost effective and administratively convenient to use the DHL facility. Rates for both groups have been calculated according to cost in man-hours, financial pre payments and allowance for credit facilities.
Can I recover the Duty and VAT charges from Customs?
If you are VAT registered you may be able to recover the VAT. But Duty and administration costs are not recoverable.
Are there any reliefs from Duty and VAT?
Yes, they include:
Where can I find out more information?
You can find out more information on Duty and VAT by visiting the Customs web site atwww.hmce.gov.uk or by contacting your local Customs office.
The person receiving the shipment is legally obliged to pay Duty and VAT except where the person sending the shipment has agreed to accept these charges in the contract of sale. Private individuals intending to buy goods on the Internet from non-EU countries should be particularly careful. Often the price advertised on the supplier's website will not include UK Duty and VAT and you will be expected to pay this once the shipment arrives in the UK.
How are the charges paid?
We will not be able to deliver your goods to you until we have paid the Duty and VAT charges on your behalf. Some businesses have their own accounts with HM Customs and Excise and we merely arrange for their account to be directly debited by Customs. Many other importers, particularly private consumers do not have an account with Customs. We must therefore pay the charges on your behalf before we can deliver your goods to you. We will then invoice you for the Duty and VAT we have paid over on your behalf. A small administration fee will be added to the Duty and VAT invoice we send you.
What is the administration fee?
The fee for business customers is £10 or 2% of the shipment value, whichever is the greater. The growth of Internet shopping has led us to introduce a different administration fee for private individuals. This is because net shoppers are usually buying infrequently and purchasing low cost items such as CDs, DVDs or software. We felt that low usage such as this merited a different fee structure. We charge £1.25, or 2% of the shipment value, whichever is the greater. This compares very favourably with our competitors and we are, as far as we are aware, the only air express carrier who has introduced a special rate for private individuals.
This is not unfair to our business customers as they have a choice. If they are importing on a frequent or high volume basis they can choose to open their deferment account with Customs. Many however find it more cost effective and administratively convenient to use the DHL facility. Rates for both groups have been calculated according to cost in man-hours, financial pre payments and allowance for credit facilities.
Can I recover the Duty and VAT charges from Customs?
If you are VAT registered you may be able to recover the VAT. But Duty and administration costs are not recoverable.
Are there any reliefs from Duty and VAT?
Yes, they include:
- Goods of £18 or less in value (excluding postage, packing and other miscellaneous costs) this does not include alcohol, tobacco products, perfume or toilet waters
- Gifts from one private individual to another providing the value does not exceed £36. (Exception: There is a very restricted gift allowance on excise goods but you are advised to contact Customs for further information)
- Personal effects of people returning to the EU after residing abroad
- Goods found to be defective or damaged or not otherwise as ordered. (Customs must be notified before qualifying goods can be returned overseas. Otherwise duty relief may be lost)
- Goods imported into the EU for processing and repair before re-export from the EU. (Your local office of HM Customs and Excise can provide you with further details)
Where can I find out more information?
You can find out more information on Duty and VAT by visiting the Customs web site at
www.hmce.gov.uk or by contacting your local Customs office.
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