Shopify Duties & Taxes — Show Customs Fees at Checkout

Display estimated import duties and taxes at Shopify checkout. No more surprise customs charges — customers see the full cost upfront before they complete their purchase.

Duties and taxes at checkout

Show estimated import duties and VAT/tax at checkout so customers see the full price upfront.

Country-specific rates

Accurate duty rates for each destination country based on tariff schedules and trade agreements.

AI-powered HS classification

Automatically classify your products with the correct HS codes — review and approve before going live.

Combined with shipping rates

Duty and tax estimates are added to carrier rates for the total landed cost at checkout.

How Import Duties Are Calculated

Import duties are calculated based on three factors: the product's HS code (Harmonized System classification), the declared value (what the customer paid), and thedestination country's tariff schedule. Each country maintains its own duty rates based on the global HS code system.

The basic formula is: Product Value × Duty Rate = Import Duty. For example, a $50 cotton t-shirt (HS code 6109.10) with an 11.5% duty rate to the UK would have $5.75 in import duty. VAT is then added on top of the combined product value, shipping cost, and duty amount.

Some countries calculate duties on CIF value (cost + insurance + freight, including shipping), while others use FOB value (product only). VAT rates also vary — the UK charges 20%, Germany 19%, Australia 10%. RateTell handles all these variations automatically at checkout.

Duties vs Taxes: What's the Difference?

Import duties (also called tariffs or customs duties) are fees charged by the destination country on imported goods. The rate depends on the product's HS code and the country's tariff schedule. Duties are designed to protect domestic industries and generate revenue.

Taxes (VAT, GST, or sales tax) are consumption taxes applied by the destination country on top of the product value, shipping cost, and the duty amount. This means tax compounds on top of duty — a practice known as tax-on-duty. For example, if a product has $10 duty and 20% VAT, the VAT is calculated on (product + shipping + $10), not just the product value.

Both duties and taxes must be paid before customs releases the package. With DDP shipping, these fees are collected at checkout and paid by the carrier on the merchant's behalf — the customer never sees a separate customs bill.

Frequently Asked Questions

How are import duties calculated?

Import duties are calculated based on the product's HS code, the declared value, and the destination country's tariff schedule. RateTell estimates duties using your approved HS classifications and live tariff data.

What's the difference between duties and taxes?

Duties are tariffs charged on imported goods based on their HS code classification. Taxes (like VAT or sales tax) are consumption taxes added by the destination country on top of the product value and shipping cost.

What are customs charges?

Customs charges is a broad term covering import duties, taxes (VAT/GST), and any handling fees charged by the carrier for customs clearance. RateTell estimates all of these at checkout so customers see the full cost upfront.

Do I need to know HS codes to use RateTell?

No. RateTell's AI automatically suggests HS codes for your products. You review and approve each classification before it's used for duty estimates.

Will I be charged for incorrect duty estimates?

Final duty amounts are determined by customs authorities. RateTell provides estimates — well-classified products with complete data produce the most reliable results. Merchants should review all HS classifications.

How do I calculate import tax for my country?

Import tax depends on the destination country's VAT or GST rate, applied to the product value plus shipping plus any duty. RateTell calculates this automatically for 200+ countries at checkout.

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Learn more: How to Calculate Import Duties · DDP Shipping · Landed Cost