European Union Duty & VAT Calculator
Please Note: Calculated amounts are estimates. They are based on 2011 annual average currency conversion rates.
Opening your doors to international buyers within the EU can be an avenue that may significantly increase your business’s sales and revenues. However, it can potentially cost you money on your international shipments. Below are a few possible circumstances that may cause you to lose money.
- Customers abandoning packages due to unexpected and expensive import taxes and carrier fees
- Having the shipping carriers charge you for the duties and taxes if the customer does not pay, or if they forget to collect
- Customers abandoning their cart at checkout due to them being unsure what the final cost will be for their order
One thing that you can do to alleviate these pains is to let the customer know up front that there may be additional duty and VAT charges and they are responsible for these fees and any other fees that the shipping carrier may charge them.
Another option is to allow your international customers to prepay for the duties and taxes at checkout. This gives your customers the comfort of knowing all of the fees that they will have to pay rather than having to guess, or getting frustrated when UPS, DHL or FedEx asks them for extra money before they will deliver the goods they ordered from your site.
Calculating EU VAT and import duties can be extremely complicated. The VAT rate varies by country and the duty rate can change by country and item. Depending on the value of the shipment you may be charged for VAT, but not duty and vice versa.
To help navigate some of these confusing waters we have created a calculator to help give you an idea of what your customers will be charged for their local country’s duties and taxes. This duty and tax calculator has been created to give you an idea of the possible charges and is not 100% accurate; it will be very close though. It does not include any possible fees that UPS, DHL, FedEx or other carriers may charge.
Please feel free to use the calculator however you see fit and feel free to contact iGlobal to get any help you may need calculating duty and VAT or improving your international customers’ experience and increasing your bottom line through international sales.
In addition to the above calculator, you may be interested in trying our International Revenue Calculator, our UPS, FedEx and DHL International Shipping Calculator or our UPS Canada Brokerage Fee Calculator.