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Guide · Taxes

Import VAT and GST: what the tax is charged on

The tax base for import VAT, GST and consumption tax is not the product price. How the UK, EU, Australia, New Zealand, Japan and Korea define it, and why duty is taxed too.

Updated 2026-09-22

“Tax = price × rate” is wrong almost everywhere. Import VAT, GST and consumption tax are charged on a defined base that normally includes the customs value plus the duty plus, depending on the country, transport costs and excise.

  • United Kingdom and EU — customs value, plus duties and other charges, plus transport, insurance and handling to the first destination inside the territory (and onward if known). VAT rate per member state; reduced rates for some goods.
  • Australia — the “value of the taxable importation”: customs value + duty + international transport and insurance + wine equalisation tax. GST 10%.
  • New Zealand — value of the goods + duty + freight and insurance. GST 15%.
  • Japan — CIF customs value + customs duty (+ other internal taxes), truncated to ¥1,000; consumption tax 10% (7.8% national + 2.2% local), reduced 8% for food and drink.
  • Korea — CIF customs value + duty + individual consumption, liquor and education taxes where they apply. VAT 10%.
  • United States — no federal VAT or GST on imports.

Because duty is part of the base, any error in duty propagates into tax. That is why LandedGrid refuses to compute tax while a duty component is unresolved: the tax line waits too.