Landed Cost Formula for Cross-border Sellers

Landed cost = product + freight + insurance + duty + import VAT (if not recoverable) + brokerage and fees

EU worked example

Goods €1,000, shipping €100, duty rate 4%, destination VAT 21%.

• Customs value = 1,000 + 100 = €1,100
• Duty = 1,100 × 4% = €44
• VAT base = 1,100 + 44 = €1,144; VAT = 1,144 × 21% = €240.24
• Landed cost = 1,000 + 100 + 44 + 240.24 = €1,384.24 (VAT may be recoverable for VAT-registered businesses)

Try your own numbers in the EU import duty & VAT calculator.

US notes

US duty is applied on the customs value using the HTS rate plus any additional duties by origin. The US tariff calculator estimates the ad-valorem part; AD/CVD, Section 232 and fees are separate.

Don't forget

• Customs brokerage, terminal and handling fees.
• Currency-conversion costs: see the currency converter with a fee.
• Returns and last-mile delivery for B2C.