What are duties and taxes?
What are duties and taxes?
Duties and taxes are an important part of international shipping, but they can be confusing
Duties and taxes are an important part of international shipping, but they can be confusing
Duties and taxes are an important part of international shipping, but they can be confusing
How customs duties and taxes affect your shipment
Customs duties and taxes can have a significant impact on total shipment costs, so it’s important to understand how the authorities calculate them and who’s responsible for the payment. This can save you and your receiver valuable time and effort.
Duties and taxes are imposed to protect national revenue and safeguard local industry. Almost all shipments crossing international borders are subject to duty and tax assessment, with customs officials basing this on information provided on the commercial invoice and other relevant documents.
Payment to the authorities must be met before the shipments are released from customs. Customs charges are based on:
- Product value
- Trade agreements (if applicable)
- Country of manufacture
- Description and end-use of product
- The product’s Harmonised System (HS) code
- Country-specific regulations
What is the difference between Value Added Tax (VAT) and Goods and Services Tax (GST)?
Most countries have a national tax, which is assessed based on the value of the goods and services. While the terminology used in different countries can vary, the principal is the same. In some countries, such as Canada, U.S. Singapore, Australia and New Zealand, this tax is known as the Goods and Services Tax, or GST.
The UK and the European Union (EU) have Value Added Tax (VAT). Businesses that are VAT-registered and fully taxable do not bear the final cost of VAT because it is a tax on consumer expenditure. It can also be known in different countries as IVA, TVA, BTW and AFA, but the principle is the same.
For IL-specific VAT rates, please see the Israel Tax Authority website.
GST
Goods and Services Tax
- Canada
- U.S.
- Singapore
- Australia
- New Zealand
VAT
Value Added Tax
- UK
- European Union (EU)
- Israel
All information is correct at time publication and FedEx Israel accept no responsibility for information relating to third party contact details changing without prior notice. Israel Tax Authority make the final decision on all imports. Read our Terms and Conditions regarding your FedEx Express IL invoices.