How to Calculate Taxes When Shipping Internationally

https://www.easyship.com/blog/how-to-calculate-taxes-duties-when-shipping-internationally

Valuation method:

• CIF
• CIF = FOB Price + Cost of shipping + Cost of insurance
• CIF Duty = CIF x Duty%
• FOB
• FOB Duty = FOB Price x Duty%

Import - export Cost Calculation:

1. Custom Value: FOB / CIF = $800
2. Import tax
1. Sales Tax = $800 x 8% -64
2. Import Duty = $800 x 4.4% = 35.2
3. Courier Handling Fee(Merchandise Processing Fee) :
1. Import by courier of value under $2500 pay MPF of $1
2. more on MPF include
1. Custom Clearance Fee or Custom Handling Fee for processing import declaration
2. Advancement Fee for paying Duty and VAT on behalf of recipient
3. Cargo Handling Fee such as loading and unloading goods
4. Security such as X-Ray
4. Total Import and Duties Formula
1.  +64 + 35.2 + 1 = 100.20
5. Other taxes if necessary
1. Excise Duty (Usually levied on alcohol, tobacco and fuel products)
2. Consumption tax on luxury goods
3. Environment Tax
4. Clearance/ Entry Fees

Country De Minimis Rules

• The Duty or Tax Free Amount known as ‘de minimis value’ is a country-specific value below which duty and tax is exempted.

Country De minimis value

• USA USD 800
• UK GBP 15
• China RMB 50
• Australia AUD 1,000
• Canada USD 15
• Dubai AED 1,000
• Singapore SGD 400
• Indonesia USD 50
• Japan JPY 10,000 (CIF value) or JPY 100 (Duty and consumption tax)
• 
  

After Brexit

 UKCA Marking and CE Marking

 https://www.gov.uk/guidance/using-the-ukca-marking#when-to-use-the-ukca-marking

VAT

https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk

VAT When to register

https://www.gov.uk/vat-registration/when-to-register

• Businesses outside the UK
• There’s no threshold if neither you nor your business is based in the UK. You must register as soon as you supply any goods and services to the UK (or if you expect to in the next 30 days).

NETPS - Non-established-taxable-persons
https://www.gov.uk/government/publications/vat-notice-7001-should-i-be-registered-for-vat/vat-notice-7001-should-i-be-registered-for-vat#non-established-taxable-persons-netps-basic-information

VAT and overseas goods sold directly to customers in the UK

https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk#goods-that-are-outside-the-uk-at-the-point-of-sale

Business to business sales to UK VAT-registered customers

The seller will not need to charge and account for VAT if the customer gives them their VAT registration number.

Goods exported from the UK from 1 January 2021 (VAT Notice 703)

https://www.gov.uk/guidance/vat-on-goods-exported-from-the-uk-notice-703