Taxes are the part beginners most often forget to budget for — and the reason a “bargain” can turn into a loss. Here’s what you actually pay when your goods arrive.
The two charges that matter
- Import duty. A percentage of the goods’ value, set by the product’s HS code (an international classification number). Different products have different rates.
- VAT or sales tax. Most countries also charge their normal sales tax on imported goods, usually on the value plus the duty and freight.
Why the HS code matters
Your product’s HS code decides the duty rate, and getting it wrong can mean overpaying — or a customs hold. Your supplier can suggest the code, but confirm it with your customs broker for your country.
Budget for it before you buy
The classic beginner mistake is pricing a deal on the factory cost alone. Add duty and tax to your landed cost first. On some products they’re small; on others they change the whole decision. A quick calculator gets you a working estimate in a minute.
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