Import customs payments: duty, VAT and excise — how to calculate

Import customs payments: duty, VAT and excise — how to calculate

Customs payments on imports into Ukraine are the import duty, excise tax (for excisable goods) and VAT. They are calculated in sequence and from a single base — the customs value: first the duty, then the excise, and only after that the VAT on their total. The basic formula for an ordinary product is: duty = customs value × the UKT ZED rate, and VAT = (customs value + duty + excise) × 20%. Payments are made in hryvnia at the NBU rate on the date the declaration is filed.

Two points often confused matter to an importing company: the "up to €150, duty-free" rule applies to parcels and does not extend to commercial imports, and the VAT paid at customs is included by a VAT payer in the tax credit. Let's break down the composition of the payments, the rates and a full calculation example.

Customs payments on commercial imports into Ukraine include the import duty (rate by UKT ZED code), excise tax for excisable goods and 20% VAT (14% or 7% for certain categories). The base for the calculation is the customs value: the price of the goods plus delivery to the Ukrainian border and insurance under the Incoterms terms. Order of calculation: customs value → duty → excise → VAT. The "up to €150" exemption applies only to postal and express shipments and does not apply to commercial consignments. A VAT payer attributes the import VAT to the tax credit, so the real burden on the business is usually limited to the duty. Payments can be reduced legally through EUR.1 certificate preferences, a correct UKT ZED code and proper accounting for the delivery terms.

What customs payments consist of

• Import duty — the main payment, depends on the product's UKT ZED code. The rate can be ad valorem (% of value), specific (per unit/weight) or combined. For goods from the EU with a EUR.1 certificate it can be zero.
• Excise tax — only for excisable goods: vehicles, alcohol, tobacco, fuel. The rates are specific and depend on the product's parameters (engine capacity, volume, quantity).
• VAT — 20% for most goods; 14% for certain agricultural products, 7% for medicines and medical devices from the relevant lists.
• Fee for customs formalities — charged in certain cases (clearance outside working hours or away from the customs office location).

Customs value as the calculation base

All payments are calculated from the customs value, so the final amount depends on determining it correctly. The customs value includes the invoice price of the goods plus the cost of delivery to the Ukrainian border and insurance — the exact composition depends on the Incoterms delivery terms.

If customs does not agree with the declared value and increases it, the payments are recalculated upwards. How to act in this case is covered in the material on customs value adjustment.

How to calculate customs payments: formulas and an example

The calculation follows a strict order — each next payment depends on the previous one.

Example for a commercial consignment with a customs value of 20,000 USD, a duty rate of 5%, goods not excisable:

The calculation is indicative: the exact rates are determined by the UKT ZED code and the current version of the Customs Tariff. You can make a rough estimate through online calculators (for example, the QDPro service), but for a B2B supply the correct code and value are best confirmed with a broker.

Rates: duty, excise and VAT

The duty rate is individual for each product code, while the VAT rates are fixed by law. The material "How to find the customs code of goods" helps determine the UKT ZED code and therefore the rates.

Commercial imports and parcels: why €150 does not apply to business

The exemption from duty and VAT for a value up to €150 concerns international postal and express shipments (mainly for individuals) — this is a separate procedure of the Customs Code. For commercial imports by a company there is no such "duty-free threshold": the duty (if provided for by the code) and VAT are charged from the first hryvnia of the customs value. That is why calculations from articles about "AliExpress parcels" cannot be applied to business supplies.

Import VAT: tax credit and refund

For a company that is a VAT payer, import VAT is not an irrecoverable burden. The VAT paid at customs, on the basis of the completed customs declaration, is included in the tax credit and reduces the VAT liabilities. In practice, for a VAT payer the real cost of importing is most often limited to the duty, while the VAT is offset through the tax credit. For a non-VAT payer, the import tax becomes part of the cost of goods — this is worth considering when choosing a tax regime.

How to reduce customs payments legally

• Use EUR.1 preferences — when importing from the EU, a correctly issued certificate gives a zero or reduced duty rate.
• Determine the UKT ZED code correctly — an error in the code leads to an inflated rate or additional charges.
• Account for Incoterms properly — do not include in the customs value costs already incurred within Ukraine.
• Confirm the "white" value with documents — this reduces the risk of the customs value being increased and of extra payments.

Trans-Hope makes a preliminary calculation of the payments before the contract is signed: we select the UKT ZED code, check the rates and preferences, and calculate the final amount for your supply. Clearance and calculations are available in Kyiv, Odesa, Lviv, Kharkiv and Dnipro. Transparent prices for services are on the customs broker services cost page. Send the invoice and a description of the goods for customs clearance — and we will calculate the payments in advance.