Landed cost between the EU, the UK and Switzerland, explained

Landed cost is what an order really costs once it is delivered: the invoice, the freight, and everything customs adds on the way. Between the EU, the UK and Switzerland the rules are stable and the numbers are not. This guide walks through the four lines of the calculation and then runs three real examples.

The four lines

1. Customs value: goods plus freight and insurance to the border, converted into the currency of the destination.
2. Duty: a percentage of the customs value, set by the tariff line of the product. Zero when a preferential origin declaration is available under the EU–UK, EU–Switzerland or Switzerland–UK agreements. Zero into Switzerland for industrial goods since 2024, whatever the origin.
3. Import VAT: the destination country's rate, applied to customs value plus duty. Deductible for a VAT-registered importer, final for a consumer.
4. Clearance fee: what the carrier charges for handling customs and advancing the taxes. Typically a flat amount plus a percentage of the taxes advanced.

Two things people get wrong: VAT is charged on the duty too, not only on the goods; and the clearance fee often exceeds the duty on small shipments.

Three flows, three different answers

• Inside the EU there is no customs at all. Business to business, VAT is reverse-charged and no cash moves at delivery. Business to consumer, the seller charges the VAT of the customer's country.
• Into Switzerland: duty zero on industrial goods, VAT 8.1% (waived when the tax would be under CHF 5), plus the carrier's fee.
• Into the UK or into the EU from outside: full customs. Duty depends on the tariff line and on origin; VAT is the destination rate; low-value rules apply (see below).

Example 1: Swiss steel parts into Germany, with and without origin proof

Goods €4,000, freight €180, duty line 2.7%, own broker at a flat €35, business buyer.

The origin declaration is worth €134 on this one shipment: the duty itself, plus the VAT that was being charged on the duty. It costs the producer a sentence on the invoice. Ask for it before you ask for a discount.

Example 2: German apparel into the UK

Goods £900, freight £60, apparel duty 12%, express courier (£25 plus 2.5% of taxes advanced), business buyer.

Apparel is where origin matters most: 12% duty, and under the EU–UK agreement most EU-made garments qualify. The difference here is £141.70, or 15% of the invoice.

Example 3: Italian machinery into Switzerland

Goods €2,500, freight €120, exchange rate 0.93, express courier, business buyer.

For a VAT-registered Swiss buyer, CHF 197 of the CHF 227 comes back as deductible input tax. The real cost of importing is the courier's CHF 30.

Low-value rules, as of September 2026

• EU: the €150 duty exemption ended on 1 July 2026. Consignments of goods up to €150 pay a flat duty of €3 per article line until 1 July 2028, then the normal tariff. VAT applies in full.
• UK: consignments under £135 pay no duty, and VAT is charged at the point of sale by the seller rather than at the border. The duty relief is scheduled to end by October 2028.
• Switzerland: no VAT collected when the tax would be CHF 5 or less.

DAP or DDP

The Incoterm does not change the landed cost; it changes who pays the taxes and fees, and when. Under DAP the buyer pays them at the door, and a consumer who did not expect that often refuses the parcel. Under DDP the seller includes them in the price. If you sell to consumers across a border, quote DDP and know the number before you print the price.

Run your own numbers

The rates above are the ones in force in September 2026 and are indicative: check the exact tariff line in TARIC, Tares or the UK Trade Tariff before quoting. For your own shipment, use the Diggiding calculator: pick the route, type the invoice and the freight, and read duty, VAT, fees and the amount due at the door. The Pro version does the same for a whole price list from a CSV file.