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Import duty and VAT in Dominican Republic: how to estimate the landed cost

Published · 3 min read

How import duty and 18% VAT stack up on shipments into Dominican Republic, with a worked landed-cost example.

Key facts

PlaceDominican Republic
TaxVAT
Standard rate on file18%
Multiply net price by1.18
Tax share of a gross price15.25%
CurrencyDOP

The customs value

Duty is usually charged on the customs value of the goods, which in many countries includes the price paid plus shipping and insurance to the border. Some countries use the value at the point of export instead, so check the valuation basis that applies in Dominican Republic.

Worked example

Here is the calculation with sample figures. Change any number in the Dominican Republic Import Duty Calculator to run your own.

Worked example: Dominican Republic Import Duty Calculator
Value of goodsDOP1,500.00
Shipping and insuranceDOP75.00
Duty rate (%)5%
Tax rate (%)18%
Import dutyDOP78.75
TaxDOP297.68
Landed costDOP1,951.42

Duty rates depend on the product code

Every product has a tariff classification code, and the duty rate is set per code. Two similar products can carry very different rates. Trade agreements, quotas and anti-dumping measures can change the rate again, so the 5% used in the example below is only an illustration.

VAT is charged on top of duty

Import VAT in Dominican Republic is normally charged on the customs value plus the duty, which means you pay tax on the duty itself. Registered businesses can often reclaim import VAT as input tax, but the duty is a real cost.

Quick reference at 18%

Common amounts in Dominican Republic, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.

AmountTax on net amountGross (net + tax)Net if amount includes tax
DOP10.00DOP1.80DOP11.80DOP8.47
DOP50.00DOP9.00DOP59.00DOP42.37
DOP100.00DOP18.00DOP118.00DOP84.75
DOP250.00DOP45.00DOP295.00DOP211.86
DOP500.00DOP90.00DOP590.00DOP423.73
DOP1,000.00DOP180.00DOP1,180.00DOP847.46
DOP5,000.00DOP900.00DOP5,900.00DOP4,237.29

How Dominican Republic compares

Standard rates on file for other countries. A difference of a few points matters most on high-value purchases and on cross-border sales.

PlaceRate on fileCompared with 18%
Cyprus19%higher
Czechia21%higher
Denmark25%higher
Ecuador15%lower
Egypt14%lower
El Salvador13%lower

Using the calculator step by step

  1. Open the Dominican Republic Import Duty Calculator.
  2. Type your figures into the numbered lines. Results update as you type.
  3. Check the rate field. It starts at 18%; change it if a reduced rate, local surcharge or exemption applies to you.
  4. Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.

Key terms

Gross amount
The amount after tax is added, which is usually what a consumer pays.
Marginal rate
The rate applied to the next unit of income. It decides how much of a raise or a deduction you keep.
Taxable income
Income left after allowances and deductions, on which the tax rates are applied.
Zero rate
A rate of 0% on a taxable supply. Unlike an exemption, the seller can usually still reclaim tax on costs.
Tax credit
An amount subtracted directly from the tax bill, worth its full face value.

Common mistakes to avoid

Run your own numbers. The Dominican Republic Import Duty Calculator updates as you type and shows the formula it uses.

Frequently asked questions

Is VAT charged on import duty in Dominican Republic?

In most systems, yes: import VAT is calculated on the customs value plus duty.

Can I reclaim import VAT?

Businesses registered for VAT can usually reclaim it as input tax, subject to local rules and proper documentation.

This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.

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