How to Calculate Duties and Taxes on Imports to Czech Republic is a critical step for international trade compliance. Import duties and taxes are mandatory fees determined by the product's classification (HS Code), its customs valuation, and its country of origin. The official authority, the Customs Administration of the Czech Republic, enforces the EU's Union Customs Code. Commercial shipments valued at or below €150 are exempt from import duties, but all commercial imports are subject to Value Added Tax (VAT), as the tax de minimis threshold is €0.
Import duties in the Czech Republic are governed by the European Union’s Common Customs Tariff (CCT). This means the duty rate applied to goods from non-EU countries is generally uniform across all EU member states. The duty rate is determined by the product’s classification under the Harmonized System (HS) and the EU’s extended tariff structure. The Czech Republic uses the 10-digit TARIC code (Tarif Intégré de la Communauté), which is based on the 6-digit HS code and the 8-digit Combined Nomenclature (CN), to identify the specific duty rate and any trade-related measures. To accurately calculate import tax in Czech Republic, the correct 10-digit code is essential. Preferential duty rates, including 0% tariffs, may apply if the goods originate from a country with which the EU has a Free Trade Agreement (FTA) and the correct proof of origin is provided.
The process for how import duty is calculated in Czech Republic is based on three main factors: Customs Valuation, HS Classification, and Applicable Taxes. The customs valuation basis for duty calculation is the CIF (Cost, Insurance, and Freight) value, as mandated by the Union Customs Code (UCC). This means the dutiable value includes the price paid for the goods, plus the cost of freight and insurance up to the point of entry into the EU customs territory. The duty itself is calculated as a percentage (the tariff rate) of this CIF value. The duty de minimis threshold is €150, meaning commercial goods with a customs value of €150 or less are exempt from customs duties. However, all commercial imports are subject to VAT, as the tax de minimis threshold is €0. The standard VAT rate in the Czech Republic is 21%, with reduced rates of 15% and 10% applying to specific goods like food, medicines, and books. Excise taxes are also levied on specific products, such as alcohol, tobacco, and mineral oils, and must be included in the total landed cost. The final import tax calculator Czech Republic formula must account for all these elements to estimate the total landed cost accurately. Customs duties in Czech Republic are paid to the Customs Administration of the Czech Republic, which manages the electronic customs declaration process through its UCC-compliant national system.
Determine the Customs Value (CIF): Calculate the total value of the goods, plus the cost of international freight and insurance to the EU border. This is the basis for calculating the duty.
Determine the Customs Duty: Apply the 10-digit TARIC code to find the duty rate. If the CIF value is over €150, multiply the CIF value by the duty rate. If the value is €150 or less, the duty is 0%.
Determine the VAT Base: The VAT base is the Customs Value (CIF) + Customs Duty + any applicable Excise Taxes and other charges arising from the import.
Calculate the Import VAT: Multiply the VAT Base by the applicable Czech VAT rate (Standard 21%, Reduced 15% or 10%). This is the final import tax in Czech Republic.
Low-Value Commercial Shipment (€100 CIF): Duty is 0% (below €150 de minimis). VAT is calculated on the CIF value (€100) at 21% (VAT Base = €100; VAT Due = €21). Total import charges: €21 (unless IOSS is used).
High-Value Commercial Shipment (€500 CIF, 5% Duty Rate): Duty is 5% of €500 = €25. VAT Base is €500 (CIF) + €25 (Duty) = €525. VAT Due is 21% of €525 = €110.25. Total import charges: €135.25.
Failing to use the correct 10-digit TARIC code, which can lead to incorrect duty rates or customs delays.
Assuming a VAT exemption for low-value commercial goods; the €22 VAT de minimis was abolished, and VAT is due on all commercial imports.
Incorrectly calculating the Customs Value by excluding freight and insurance costs (CIF) when determining the dutiable amount.
The most significant special rule for cross-border eCommerce is the Import One-Stop Shop (IOSS). For B2C consignments valued up to €150, IOSS allows the seller to collect and remit the Czech VAT (21%, 15%, or 10%) at the point of sale. If the IOSS number is provided on the customs declaration, the shipment is fast-tracked and no import VAT is collected from the customer upon arrival. If IOSS is not used, the VAT must be collected from the recipient by the carrier or customs agent, often incurring an additional handling fee. Furthermore, the Czech Republic, as part of the EU, offers duty exemptions for goods imported for re-export in an unchanged state and applies preferential tariffs under EU Free Trade Agreements.
The formula is: (Customs Value + Duty + Excise Tax) x VAT Rate. The Customs Value is typically the CIF value (Cost, Insurance, Freight). Duty is calculated as a percentage of the CIF value, and VAT is calculated on the total of CIF + Duty + Excise.
Yes, the duty de minimis threshold is €150. Commercial shipments with a customs value of €150 or less are exempt from customs duties. However, VAT is still due on all commercial imports.
The standard Value Added Tax (VAT) rate on imports to the Czech Republic is 21%. Reduced rates of 15% and 10% apply to specific categories of goods.
The Czech Republic uses the 10-digit TARIC code (Tarif Intégré de la Communauté), which is the EU's integrated tariff system, based on the international 6-digit HS code.