Sometimes when sending goods internationally an import tax is due to be paid by the receiver dependant on his or her country. The Duty is calculated as a percentage of the value of the goods that are being delivered into the country and VAT is also due. Many goods are duty free however depending on the destination country depends on import tax that receiver may or may not be requested to pay.
How is the import tax calculated?
The tax is calculated using 3 different values:
- The price paid for the goods or the value specified on the package
- The insurance cost
- The shipping cost
Each country will have a minimum threshold before any import taxes are applied. At present anywhere in Europe where the total value of the goods does not exceed £135(€150) will not pay an import tax.
When sending gifts abroad it is important that you specific they are gifts on the package and this way it can reduce the potential of any import taxes being added. Also when sending gifts abroad it is your responsibility to provide the following information before shipping:
- Description of the goods
- Value of the goods purchased
- Your name and address in case of returns
Which countries have import taxes?
It varies from country to country and is therefore important you check the regulations before you send any gifts that will exceed the value of £15.
As an example duty rates in Australia average around 4.6% however some goods such as laptops and electronics are not subject to duty. Canada however has different import taxes dependant on the province so its not just about the country destination.
We recommend using a Duty Calculator
How do I avoid import taxes?
The best way to avoid import taxes when buying gifts for overseas is to buy gifts directly from the destination country. Use our database of website’s to find one in the country you are searching for. All our websites are handpicked to provide you with a selection of different locations you can buy great gifts from.