CIF Value = Product Cost + Shipping + InsuranceCustoms Duty = CIF Value × Customs Duty RateVAT = (CIF Value + Customs Duty) × VAT RateTotal Cost = CIF Value + Customs Duty + VAT
Product: $ 1000, Shipping: $ 1000, Insurance: $ 200
If Customs: 20 %, and VAT is: 18 %:
CIF = 10.000 + 1.000 + 200 = 11.200 $Customs = 11,200 × 0.20 = 2,240 $VAT = (11,200 + 2,240) × 0.18 = 2,419.20 $Total = 11,200 + 2,240 + 2,419.20 = 15,859.20 $