The landed cost is everything a car costs you between the seller's price and the moment it can be sold on your forecourt. It is the only number a buy decision can be made on, and every line in it either comes from a quote, from a published rate, or from your own records — never from a guess.
The short version
- A landed cost has four blocks: the car at source, the voyage, the border and the road.
- Taxes are calculated in a fixed order, each on a base the law sets.
- Compare a VAT-exclusive cost with a VAT-exclusive resale price, or the margin is overstated.
- A rate you cannot confirm is a question for the authority, not a number to estimate.
Landed cost, in one paragraph
Add the purchase price and the source-country costs, convert them, add freight and insurance to reach the customs value, apply your country's duty and taxes in the order its law sets, then add the border and road costs: agent, port, approval, registration and preparation. Compare the result, net of any tax you can recover, with what the car will sell for, net of the same tax.
Every line in a landed cost
| Block | Lines | Where the figure comes from |
|---|---|---|
| The car at source | Price; auction or dealer fees; inland transport to port; export paperwork; any pre-shipment inspection or cleaning | Seller's invoice, agent's and inspector's quotes |
| The voyage | Freight; marine insurance; loading charges | Shipping line or forwarder quote; insurer |
| The border | Customs duty; excise or special taxes; levies; VAT or GST; clearing agent's fee; port and terminal charges | Your country's tariff and revenue authority; agent's quote |
| The road | Approval or roadworthiness tests; registration fee and registration tax; plates; preparation and any repairs | Authority's fee schedule; your workshop |
| The money | Currency conversion; bank charges; the cost of capital while the car is in transit | Your bank; your finance rate |
The order the lines are calculated in
- Convert the price and source costs into your currency at the rate you will actually pay.
- Build the customs value: price plus freight plus insurance to your border, converted at the customs authority's rate.
- Apply customs duty to the customs value.
- Apply excise or special taxes to the base the law sets — often value plus duty.
- Apply levies to their own base.
- Apply VAT or GST to the total so far.
- Add the border costs, the road costs and the cost of money.
The reason the order matters is explained in car import duty and taxes, and how the customs value is built in how customs values an imported car.
Which taxes go into your country's landed cost?
| Country | Duty and taxes |
|---|---|
| The UK charges customs duty, then 20% import VAT on a value that already includes the duty. | |
| A car from outside the EU pays customs duty, then 23% import VAT, then Vehicle Registration Tax (VRT) on registration. | |
| Malta charges a registration tax set by the car's CO₂ emissions and length, plus customs duty and VAT on a car imported from outside the EU. | |
| A car from outside the EU pays 10% import duty and then 19% VAT on the customs value plus the duty. | |
| Kenya charges import duty, excise duty, 16% VAT, an Import Declaration Fee and the Railway Development Levy, all based on the customs value. | |
| Tanzania charges import duty, VAT and excise duty, with extra excise on a used car that rises with its age. | |
| The Uganda Revenue Authority assesses import duty, VAT and other levies at entry; confirm the rates for your exact vehicle with URA, as they are set in each year's finance measures. | |
| Mauritius charges excise duty set by engine capacity (or by power for an electric car), plus 15% VAT. | |
| Jamaica Customs assesses duty and taxes on an imported car; confirm the rates for your exact vehicle with the Jamaica Customs Agency before you price it. | |
| The Customs and Excise Division assesses duty and taxes on an imported car; check the Ministry of Trade's budget measures on motor vehicles for the rates in force. | |
| GST at 15% is charged on the New Zealand value of the car plus any duty payable, freight and insurance. | |
| Sri Lanka charges customs import duty, excise duty and luxury tax on vehicles, and the rates change often — the Customs tariff for the month of import is the only safe figure. |
Choose a country for its full rules and the official sources, checked 27 October 2026.
Duty and taxes · United Kingdom
The UK charges customs duty, then 20% import VAT on a value that already includes the duty.
- Third-country duty on a used passenger car is 10% (UK tariff, commodity 8703 23 90 00).
- A car that originates in a partner country can enter at a preferential rate — Japan's reached 0% on 1 February 2026 — but only on an origin claim the importer can evidence. Japan Customs warns that a used car qualifies only if it can be proved originating when built, and that its manufacturer is not obliged to supply that proof.
- A VAT-registered business can reclaim import VAT, or account for it on its VAT return through postponed VAT accounting instead of paying it at the border.
- A dealer cannot use the VAT margin scheme on a car it imports itself, so VAT is charged on the full selling price when the car is sold.
How customs values the car · United Kingdom
The customs value is the price paid plus transport and insurance to the UK border, and duty and VAT are worked out from it.
- A price in a foreign currency is converted at HMRC's published monthly rate for the month of import, not at the rate your bank gave you.
- HMRC publishes each month's rates on the penultimate Thursday of the month before.
Sources for United Kingdom, checked 27 October 2026:
- Commodity 8703 23 90 00 — used passenger cars, 1,500–3,000cc — UK Integrated Online Tariff
- Application of the Japan–EU and Japan–UK rules of origin to used goods (leaflet) — Japan Customs
- Check when you can account for import VAT on your VAT Return — HMRC
- Check if you can use a VAT margin scheme if you import from, or export to, countries outside the UK — HMRC
- Importing vehicles into the UK — GOV.UK
- Exchange rates for customs and VAT — UK Integrated Online Tariff
Duty and taxes · Ireland
A car from outside the EU pays customs duty, then 23% import VAT, then Vehicle Registration Tax (VRT) on registration.
- Revenue's guidance on cars from Great Britain applies customs duty of 10% on the customs value of a car that does not qualify for preferential origin.
- Import VAT is charged at the standard rate, 23%, on the customs value plus the duty, and must be paid before the car is released from customs control.
- VRT is calculated on the car's Open Market Selling Price (OMSP) in Ireland, not on the price you paid for it.
- Revenue notes that customs duty cannot be recovered, even by a VAT-registered trader.
- Japan-built cars can qualify for 0% duty under the EU–Japan agreement, but Japan Customs warns that a used car qualifies only if its origin when built can be proved.
How customs values the car · Ireland
Customs duty and VAT are worked out on the customs value — the invoice price plus transport and insurance — while VRT is worked out on Revenue's OMSP.
- Because VRT uses the Irish open-market price rather than the purchase price, a car bought cheaply abroad does not pay less VRT for it.
Sources for Ireland, checked 27 October 2026:
- VAT implications of importing vehicles from Great Britain and Northern Ireland — Revenue
- Tax and Duty Manual: VAT and VRT on transactions involving motor vehicles — Revenue
- Vehicle Registration Tax — Revenue
- Application of the Japan–EU and Japan–UK rules of origin to used goods (leaflet) — Japan Customs
Duty and taxes · Malta
Malta charges a registration tax set by the car's CO₂ emissions and length, plus customs duty and VAT on a car imported from outside the EU.
- For a passenger car (category M1), Transport Malta calculates registration tax from the CO₂ figure, the registration value and the vehicle's length.
- A minimum registration tax applies to a used car imported from outside the EU that is more than five years old, counted from the year of manufacture; electric cars and plug-in hybrids with more than 50 km of electric range are exempt from that minimum.
- Since 1 January 2021 a car from the UK is a third-country import, and customs duty and VAT apply.
How customs values the car · Malta
Registration tax works from Transport Malta's registration value for the car, which the government's online calculator produces.
Sources for Malta, checked 27 October 2026:
Duty and taxes · Cyprus
A car from outside the EU pays 10% import duty and then 19% VAT on the customs value plus the duty.
- Cyprus Customs states that, from 22 March 2019, no excise duty is imposed on motor vehicles imported into Cyprus.
- Road tax after registration is set by the car's CO₂ emissions.
How customs values the car · Cyprus
The customs value is the purchase price plus freight and insurance to the port or airport of entry.
Sources for Cyprus, checked 27 October 2026:
- Vehicles from countries outside the European Union — on payment of import duty and VAT — Cyprus Customs & Excise Department
- Excise duties — general information — Cyprus Customs & Excise Department
- Running and growing your business — registering a vehicle — Business in Cyprus (Government of Cyprus)
Duty and taxes · Kenya
Kenya charges import duty, excise duty, 16% VAT, an Import Declaration Fee and the Railway Development Levy, all based on the customs value.
- KRA's own procedure page lists import duty at 25%, the Import Declaration Fee at 3.5% and the Railway Development Levy at 2%; press reporting since 2024 puts import duty at 35% following an East African Community tariff revision. Confirm the rate in force with KRA before pricing a car.
- Excise duty depends on fuel and engine size: KRA lists 20% for a 1,000–1,500cc petrol engine, 25% for 1,500–3,000cc petrol and for hybrids, 35% above 3,000cc petrol or 2,500cc diesel, and 10% for a fully electric car.
- VAT at 16% is charged on a value that includes the duty and excise.
How customs values the car · Kenya
KRA values a used car against its own published motor-vehicle valuation schedule rather than the invoice you paid, so two importers of the same model pay the same duty.
- KRA's procedure page links its motor-vehicle valuation template, effective 1 July 2023. The trade usually calls it the CRSP (current retail selling price) schedule.
Sources for Kenya, checked 27 October 2026:
- Importation procedure for motor vehicles — Kenya Revenue Authority
- A breakdown of vehicle importing charges and taxes — The Standard (press report of the official notice)
Duty and taxes · Tanzania
Tanzania charges import duty, VAT and excise duty, with extra excise on a used car that rises with its age.
- The Finance Act 2026, in force from 1 July 2026, sets the age excise on imported used vehicles at 18% for eight to ten years old, 35% for over ten up to twenty years, and 40% for over twenty years.
- The Citizen reports that the same Act brought engines of 1,000cc or less, previously exempt, into excise at 5%.
How customs values the car · Tanzania
TRA assesses duty and taxes on the customs value of the car; confirm with TRA how it values the exact model before you price it.
Sources for Tanzania, checked 27 October 2026:
- The Finance Act, 2026 — Tanzania Revenue Authority
- Importing a used car now costs more as Finance Act takes effect — The Citizen (press report of the official notice)
- Tanzania Revenue Authority — TRA
Duty and taxes · Uganda
The Uganda Revenue Authority assesses import duty, VAT and other levies at entry; confirm the rates for your exact vehicle with URA, as they are set in each year's finance measures.
How customs values the car · Uganda
URA assesses the car's customs value at entry; confirm with URA how it values a used car of your model and year.
Sources for Uganda, checked 27 October 2026:
- Uganda Revenue Authority — URA
Duty and taxes · Mauritius
Mauritius charges excise duty set by engine capacity (or by power for an electric car), plus 15% VAT.
- MRA's motor-vehicles page runs from 0% excise for a combustion car up to 550cc to 100% above 2,000cc, and taxes electric cars by power rating at 15% or 25%.
- MRA's older duty-calculation guide shows different engine bands for the same category. Confirm the bands in force with MRA before you price a car.
How customs values the car · Mauritius
MRA values a used car from the FOB value of identical vehicles imported before, reduced by 9% for the first month of use and 1% for each month after, to a maximum of 50%.
- Where no such value exists, MRA starts from the retail price when new in the exporting country, less 5%, then applies the same monthly reduction.
- For cars from Japan, MRA assesses the FOB value through its online second-hand vehicle valuation system.
Sources for Mauritius, checked 27 October 2026:
- Customs — motor vehicles — Mauritius Revenue Authority
- How to calculate duty and taxes payable on vehicles — Mauritius Revenue Authority
Duty and taxes · Jamaica
Jamaica Customs assesses duty and taxes on an imported car; confirm the rates for your exact vehicle with the Jamaica Customs Agency before you price it.
How customs values the car · Jamaica
Duty is assessed on the car's customs value at entry; confirm the basis for your model with the Jamaica Customs Agency.
Sources for Jamaica, checked 27 October 2026:
- Motor vehicle — general information — Trade Board Limited
Duty and taxes · Trinidad and Tobago
The Customs and Excise Division assesses duty and taxes on an imported car; check the Ministry of Trade's budget measures on motor vehicles for the rates in force.
How customs values the car · Trinidad and Tobago
Duty is assessed on the car's customs value at entry; confirm the basis with the Customs and Excise Division.
Sources for Trinidad and Tobago, checked 27 October 2026:
- Customs and Excise Division — Ministry of Finance
- Budget measures on motor vehicles (used and new) — Ministry of Trade, Investment & Tourism
Duty and taxes · New Zealand
GST at 15% is charged on the New Zealand value of the car plus any duty payable, freight and insurance.
How customs values the car · New Zealand
New Zealand Customs works GST out on the car's value plus freight and insurance to New Zealand, and any duty payable.
Sources for New Zealand, checked 27 October 2026:
- Fact sheet: importing goods for business or commercial use (April 2026) — New Zealand Customs Service
Duty and taxes · Sri Lanka
Sri Lanka charges customs import duty, excise duty and luxury tax on vehicles, and the rates change often — the Customs tariff for the month of import is the only safe figure.
- A 20% customs import duty on motor vehicles took effect on 28 January 2025, and Gazette 2421/43 added a 50% surcharge on that duty from 1 February 2025 for one year. Check with Sri Lanka Customs whether the surcharge was renewed.
- The Customs tariff carries separate lines for many cars by age, such as 'not more than three years old' and 'more than three years old'.
How customs values the car · Sri Lanka
Customs duty is assessed on the car's CIF value — cost, insurance and freight — at entry.
Sources for Sri Lanka, checked 27 October 2026:
- Mid-Year Fiscal Position Report 2025 — Ministry of Finance, Sri Lanka
- Gazette Notification No. 2421/43 (31 January 2025) — customs surcharge — Ministry of Finance, Sri Lanka
- National Imports Tariff Guide 2025 — Chapter 87 — Sri Lanka Customs
- Importation of a used motor vehicle under import control licence — Department of Import and Export Control
Rates change, often in annual finance laws. The country section names the authority behind each rate and the date it was checked. Confirm the rate for your car's exact code, age and engine with that authority or a licensed clearing agent before you commit.
Testing the margin before you buy
Compare like with like
If you can recover import VAT, leave it out of the cost and divide a VAT-inclusive retail price by one plus your VAT rate (1.2 for 20% VAT) before comparing. If you cannot recover it, keep it in. Subtracting a VAT-exclusive landed cost from a VAT-inclusive asking price overstates the margin by the whole VAT on the sale.
Work the sum backwards too: from the price you expect to sell at, subtract your target margin and every line above, and what remains is the most the car is worth to you at source — the ceiling to bid or offer to. That calculation is the heart of buying at overseas auctions, and the exchange-rate line is explained in currency risk for car importers.
When you have your own figure for a car, you can send a dealer inquiry and check a quote against it line by line. The full process is in the dealer's guide to sourcing cars overseas.