How to calculate duty? Simple formula [2026]
Duty is calculated on the customs value: the price paid or payable for the goods plus transport and insurance costs up to the border and certain other additions not included in the price. Once the duty amount is known, VAT is then calculated on the enlarged base, so mistakes in the first step affect the whole landed cost.
Status
verified against official sources
Author
easyclearance.pl teamPublished
18 February 2026
Updated
4 March 2026
Quick definition
Duty is calculated on the customs value: the price paid or payable for the goods plus transport and insurance costs up to the border and certain other additions not included in the price. Once the duty amount is known, VAT is then calculated on the enlarged base, so mistakes in the first step affect the whole landed cost. A reliable estimate therefore depends on correct valuation, the right commodity code and a clear view of which charges belong in the customs base.
The basis for customs duty calculation is Customs Value. Customs Value = price actually paid or payable for the goods + transport, insurance, loading and handling costs up to the point of entry into the EU (or UK) + other additions not already included in the price (e.g. commissions, packing costs, royalties and licence fees, materials or tools supplied by the buyer free of charge).
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- You buy shoes from China for 1000 PLN.
- Transport costs 200 PLN.
- Customs duty on shoes (from China) is e.g. 8% (fictional).
Customs base: 1200 PLN. Duty payable: 1200 × 0.08 = 96 PLN.
What about VAT? VAT is calculated on the total sum (Goods + Transport + Duty). VAT base: 1200 + 96 = 1296 PLN. VAT (23%): 1296 × 0.23 = 298.08 PLN.Total payable at the border: 394.08 PLN.
What the current official guidance means in practice
For operational work, the current procedural rules, declaration fields and relief conditions should be checked directly against the official guidance. For this topic, the core reference points are GOV.UK / HMRC, European Commission.
Operational watch-outs
Most delays come from inconsistent data between the commercial invoice, packing list, tariff classification, reference numbers and transport assumptions. Before shipment release, confirm who is responsible for clearance, whether the data set is complete and when the declaration must be filed.
Documents and data to prepare
The minimum working pack worth preparing before speaking to customs support or filing a declaration includes:
- commercial invoice with a complete goods description
- packing list with quantities, weight and package count
- HS/CN code and origin information
- EORI number and the party responsible for the declaration
Practical notes for UK-PL operators
For regular flows, keep a stable data template: goods description, HS code, origin, Incoterms, carrier details and source documents. This shortens response time and reduces border corrections.
Official sources
- UK GOV (Import VAT & PVA) — GOV.UK / HMRC, 2026-03-04
- EU Commission (Customs procedures) — European Commission, 2026-03-04
- GOV.UK: tax and duty on goods sent from abroad — GOV.UK / HMRC, 2026-03-04
Disclaimer: The information on the site is operational and informational in nature and does not constitute legal or tax advice.
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