VAT and customs duty - a deeper look
If customs duty and / VAT are applicable you pay on the entire value. So a gift worth 2 000 kr incurs customs duty and VAT on the entire 2 000 kr and not just on the 400 kr between 1 600 kr and 2 000 kr.Customs duty can vary and there are many different percentages used ranging from 0 % to 20 %. For parcels up to a value of 7 600 kr everything is charged at a token customs duty rate of 2.5%. If there are multiple gifts in a single parcel with a total value of over 1 600 kr you pay no customs duty or VAT on the first 500 kr worth of combined items. Example 1
Pair of pants value = 150 kr T shirt value = 200 kr Trousers value = 300 kr Jeans value = 400 kr Leather jacket value = 2 450 kr Total value = 3 500kr The value of the T-shirt and trousers is 500 kr so this is deducted Without GB certificate of origin
3 500 kr - 500 kr = 3 000 kr2.5 % customs duty on 3 000 kr = 75.00 kr 25 % VAT on 3 075 kr = 768,75 kr To pay: customs duty (75 kr) + VAT (768,75 kr) = 843,75 kr + Postnord VAT handling fee With GB certificate of origin
3 500 kr - 500 kr = 3 000 kr25 % VAT on 3 000 kr = 750 kr To pay: VAT (750 kr) + Postnord VAT handling fee Example 2
Without GB certificate of origin
Pair of pants value = 150 kr T shirt value = 200 kr Trousers value = 300 kr Jeans value = 400 kr Leather skirt value = 1 450 kr Total value = 2 500kr The value of the T-shirt and trousers is 500 kr so this is deducted. Without GB certificate of origin
2 500 kr - 500 kr = 2 000 kr2.5 % customs duty on 2 000 kr = 50 kr 25 % VAT on 2 050 kr = 512,50 kr To pay: customs duty (50 kr) + VAT (512,50 kr) = 562,50 kr + Postnord VAT handling fee Example 2 could be split into two separate parcels. As both parcels are valued at under 1600 kr there are is no customs duty or VAT. Make sure the sender in the UK knows this. Parcel 1 Pair of pants value = 150 kr T shirt value = 200 kr Trousers value = 300 kr Jeans value = 400 kr Value = 1 050 kr No customs duty or VAT as it is a gift valued under 1 600 kr Parcel 2 Leather skirt value = 1 450 kr Value 1 450 kr No customs duty or VAT as it is a gift valued under 1 600 kr Example 3
Leather trousers value = 1 400 krLeather belt value = 400 kr Total value = 1 800 kr Without GB certificate of origin
The belt is part of items under 500 kr so no customs duty or VAT are charged on that. You don't pay customs duty or VAT on parcels valued under 1 600 kr, the belt is exempt as it is in that first 500kr allowance of bringing the total down to 1400 kr but because the total is over 1 600 kr you still have to pay customs duty and VAT on the leather trousers.1 400 kr Add 2.5 % customs duty (35 kr) = 1 435 kr Add 25 % VAT on 1 435 kr = 359 kr To pay: customs duty (35 kr) + VAT (359 kr) = 394 kr + Postnord or other courier MOMS handling fee Note that as with example 2 this could have been split into two parcels and neither parcel would have incurred customs duty or VAT. Example 4a "items under 500 kr" explained part 1
Item 1 value = 50 krItem 2 value = 120 kr Item 3 value = 120 kr Item 4 value = 200 kr Item 5 value = 250 kr Item 6 value = 3 000 kr Total 3 740 kr In this parcel you look for items with a combined total of 500 kr. Item 1 value = 50 kr Item 4 value = 200 kr Item 5 value = 250 kr These total 500 kr so they are removed from the total before customs duty and VAT are added. 3 740 kr - 500 kr = 3 240 kr To pay = + 81 kr customs duty + 830 kr VAT = 911 kr + courier VAT handling fee. But even example 4 could have been split into two parcels Parcel 1 Item 1 value = 50 kr Item 2 value = 120 kr Item 3 value = 120 kr Item 4 value = 200 kr Item 5 value = 250 kr Total value = 740 kr = no customs duty or VAT. No courier VAT handling fee. Parcel 2 Item 6 value = 3 000 kr To pay = + 75 kr customs duty + 769 kr VAT = 844 kr + courier VAT handling fee. In example 4a if sent as 1 parcel the customs duty and VAT are 911 kr In example 4a if sent as 2 parcels the customs duty and VAT are 844 kr So the sender needs to compare the price of postage. It's better to send as one parcel if the cost is at least 66 kr cheaper than sending two parcels. Example 4b "items under 500 kr" explained part 2
Item 1 value = 600 krItem 2 value = 600 kr Item 3 value = 600 kr Total value = 1 800 kr There are no items totalling 500 kr so there is no exemption and you pay customs duty and VAT on the 1800 kr. To pay = + 45 kr customs duty + 461 kr VAT = 505 kr + courier VAT handling fee. If you are learning this now you will realise that example 4b could have been split into Parcel 1 Item 1 value = 600 kr Item 2 value = 600 kr Total value = 1 200 kr = No customs duty or VAT to pay Parcel 2 Item 3 value = 600 kr = No customs duty or VAT to pay So in example 4b the addressee saves 505 kr + courier VAT handling fee. Return Return to Previous Page |