MySagePay
Login >

Paying International Duties And Taxes

Business without borders

Download full guide

Read Next Chapter

 

Paying International Duties And Taxes

The methods used to calculate import duties vary depending on each country. 

Below are the three main ways that these duties are levied. 

Percentage of the imported value

This simply involves paying a specific percentage of the total stated value of the products being imported. So, if you’re shipping £350 worth of goods and the duty is 10%, then you would owe £35. 

Per-product

Rather than paying a percentage of the overall sum, you pay a specific percentage on every product you are importing. These rates may vary by product

Per-pound

This way is similar to the first, but it involves paying a specific percentage for each pound of imported product. 

So how are these duties collected? Firstly, the value of the goods being imported are declared to customs by the importer in the documentation. Customs then assess the value of the goods upon receiving them and calculate the required duties, which must be paid at the border when the goods arrive.

The cost of import duties from international shipping are passed along to the customer. It’s worth mentioning that some countries have very high import duties for consumer products and can cost as much as the product itself. It’s vital you make sure you clearly state to your customers that they are responsible for all duties and import fees, and always factor these costs into the estimated cost of shippings customers get in their online shopping cart. This may have a detrimental effect on your revenue otherwise. 

 

Conclusion

If your ecommerce business wants to start shipping internationally then as you can see from this article there’s a lot to take into consideration. The more you know and can prepare for any duties or taxes before you ship, the more time and money you will save. 

More information

Read Next Chapter: Multi-Language / Multi-Region Customer Service

Find out more
Read Next Chapter: Multi-Language / Multi-Region Customer Service

Download Full Guide

Find out more
Download Full Guide